ülekollateraalsuse
Ülekollateraalsus, also known as overcollateralization, refers to the practice of providing more collateral than is required to secure a loan or financial obligation. This strategy is often employed to reduce the risk of default and to provide a safety buffer for lenders. Overcollateralization can be seen in various financial instruments, including derivatives and structured finance products.
In the context of derivatives, overcollateralization is a common practice to mitigate counterparty risk. For example,
Overcollateralization can also be observed in structured finance products, such as collateralized debt obligations (CDOs). In
While overcollateralization can provide additional security for lenders, it also comes with its own set of
In summary, ülekollateraalsus, or overcollateralization, is a strategy used to reduce risk and provide additional security