Series: IMF Working Papers
Author(s): James Aitken , and Manmohan Singh
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 2009
Keywords: Rehypothecation, Lehman&;amp;#x2019;s bankruptcy, Counterparty risk, collateral, hedge, financial system, hedge fund, Financial Institutions and Services: Government Policy and Regulation, International Monetary Arrangements and Institutions, Corporation and Securities Law
Rehypothecation is the practice that allows collateral posted by, say, a hedge fund to their prime broker to be used again as collateral by that prime broker for its own funding. In the United Kingdom, such use of...