The 2023 Collateral Crisis
Once again, the global landscape is fraught with crises affecting the economy and geopolitics. The ongoing Russian invasion of Ukraine, supported by China and to some extent India, has led to widespread repercussions. Many Western nations are grappling with an energy crisis, soaring interest rates, credit c
Collateral Transfer Mediums
The term “Collateral Transfer Medium” typically refers to the method or platform through which the collateral transfer process is facilitated. In financial contexts, especially involving Collateral Transfer Agreements, the medium could involve various mechanisms for transferring, securing, or ut
Reason for annually establishing fixed terms for Collateral Transfer
Collateral Transfer facilities are commonly offered with terms ranging from 12 to 72 months, typically structured as renewable 12-month contracts. The annual nature of these terms is often tied to the providers’ contracts with their investors, which operate on an annual basis, yielding annual returns.
Reason behind naming it a ‘Leasing’ Bank Guarantee or Standby Letter of Credit?
The term ‘leasing’ in the context of Bank Guarantees and Collateral Transfer is a misnomer and should be avoided. The common phrases “Leasing Bank Guarantees” or “Leasing Standby Letters of Credit” are often associated with Collateral Transfer. However, using the term 
