rehypothecate in a sentence
v. t.
📚 Grade Level: Grade 11, Grade 12
Definition
Rehypothecate: to use assets pledged as collateral for a loan as collateral for another loan, typically by a financial institution.
Sample Sentences
- The bank decided to rehypothecate the collateral to raise additional liquidity.
- Investors were wary of the risks associated with rehypothecating their assets.
- In times of market volatility, institutions may choose to rehypothecate their clients' securities.
- She explained how the practice of rehypothecating can lead to increased leverage in financial markets.
- Regulatory changes have made rehypothecating less common among hedge funds.