Hypothecation

Explore the concept of rehypothecation, where banks and brokers utilize clients' posted collateral for their own transactions. Learn the key aspects, advantages, disadvantages, and real-world examples, alongside how you can protect your assets.

Discover the ins and outs of hypothecation: a powerful financial tool that allows you to pledge assets as collateral while retaining ownership. This guide explains its mechanism, applications in mortgage and investment, and strategies for risk management.