hypothecating
Securing a loan
Hypothecating is pledging property as security for a debt without transferring ownership or possession.
A homeowner hypothecates their house when taking out a mortgage—the bank holds a claim against it, but the owner keeps living there.
In finance, brokers hypothecate clients' securities as collateral for margin loans.
The firm was hypothecating customer assets to cover its own positions.
Making a solemn promise
- securityProtection from threat
- lienClaim securing debt
- encumbranceHindrance or legal claim
- chargeCost or accusation
asset · securitization · guarantee · debenture · bond · title · valuation · repossession
Borrowed money repaid later
- borrowingTemporary taking of another's
- creditRecognition or payment deferral
- financingProviding capital for purchases
- leverageBorrowed capital for amplified returns
debt · capital · funding · interest · principal · default · liability · creditor
Something owned or inherent
- deedWritten property conveyance
- homeownershipLegally possessing residential property
- foreclosureLender seizes mortgaged property
- lenderOne who loans money
borrower · equity · amortization · escrow · refinance · appraisal · conveyancing · underwater
Unwitting tool of another
- bailmentTemporary property entrustment
- suretyBacker of obligation
- depositPlace for safekeeping
- possessionState of owning
delivery · handing over · earmarking · dedication · appropriation · assignment · transfer · redelivery
State of being unprotected
- speculationUnproven theorizing or risky investment
- margin callBroker's request for funds
- defaultPreset standard option
- counterpartyOther side in deals
volatility · leverage · liability · insolvency · bankruptcy · shortfall · credit risk · market risk
pledging
Making a solemn promise
- securityProtection from threat
- lienClaim securing debt
- encumbranceHindrance or legal claim
charge · asset · securitization · guarantee · debenture · bond · title · valuation · repossession · foreclosure
loan
Borrowed money repaid later
- borrowingTemporary taking of another's
- creditRecognition or payment deferral
- financingProviding capital for purchases
leverage · debt · capital · funding · interest · principal · default · liability · creditor · debtor
property
Something owned or inherent
- deedWritten property conveyance
- homeownershipLegally possessing residential property
- foreclosureLender seizes mortgaged property
lender · borrower · equity · amortization · escrow · refinance · appraisal · conveyancing · underwater · servicer
pawn
Unwitting tool of another
possession · delivery · handing over · earmarking · dedication · appropriation · assignment · transfer · redelivery · redemption
exposure
State of being unprotected
- speculationUnproven theorizing or risky investment
- margin callBroker's request for funds
- defaultPreset standard option
counterparty · volatility · leverage · liability · insolvency · bankruptcy · shortfall · credit risk · market risk · concentration