
Pledge v Outright Transfer of Title in Collateral: how to choose which option is best for you?
With regulatory reform in the banking and finance sector focussing on the need to collateralise and secure exposures, there is renewed interest in collateral agreements. Many different derivatives, securities and financing transactions have collateral mechanisms built into the legal documentation which is used. This article aims to break down the main collateral agreements and give a brief overview of the mechanisms provided for securing the exposures and obligations intrinsi