Course 106:
The Role of Collateral
In this course
1 Introduction
2 Collateral
3 Collateral Used to Secure Bonds
4 Collateral Reduces Default Risk
5 Collateralized Securities May Offer Lower Rates
6 Advantage of Collateral

When you buy a bond or other debt security, it is important to consider whether it has collateral behind it. Many bonds do, but many do not. Collateral plays a role in the value and desirability of a bond. You can choose to buy a bond based on whether it has collateral and, if so, what kind of collateral it has.

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