Rehypothecating - definition of Rehypothecating by The Free Dictionary
Rehypothecate (redirected from Rehypothecating)
Also found in: Financial
|v. t.||1.||(Law) To hypothecate again.|
Webster's Revised Unabridged Dictionary, published 1913 by G. & C. Merriam Co.
References in periodicals archive
that 92.7% of all large dealers report rehypothecating
the collateral that secures dealer banks' loans to customers, the dealer bank can provide to customers lower-cost financing, or increase its own profit margins.
The banks also use non-cash collateral (e.g., securities pledged) on mark-to-market gains as collateral for themselves by rehypothecating
(collateralizing the same collateral by multiple parties multiple times).