Lesson plan
Auto-collateralisation
Auto-collateralisation is a credit operation that is or can be triggered, when a buyer does not have sufficient funds to settle a securities transaction, in order to improve its cash position for the next settlement cycle. The credit provided can be secured using securities already held by the buyer (“collateral stocks”) or the securities that are being purchased (“collateral flows”).
Article summary
Auto-collateralisation is a credit operation that is or can be triggered, when a buyer does not have sufficient funds to settle a securities transaction, in order to improve its cash position for the next settlement cycle. The credit provided can be secured using securities already held by the buyer (“collateral stocks”) or the securities that are being purchased (“collateral flows”).
Key claims
No claims recorded.
Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.