See Also: defeasance(dictionary)
Defeasance(law)
Defeasance(finance)
Defeasance(money)
Legal defeasance(finance)
Legal defeasance(money)
In substance defeasance(finance)
In-substance defeasance(money)
Economic defeasance(money)
DEFEASANCE, contracts, conveyancing(law)

Defeasance (money)


Definition: [crh] The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Definition: Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet. In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreedDefinition: . This is necessary to facilitate netting, and reduce counterparty risk exposure. The term has become popular recently, because of the growth ofDefinition: central counterparty clearing services in European cash equities markets.