C
   
   Collateral Agreement
   















 

C

Collateral Agreement

A provision in a risk management agreement that requires one party (a unilateral collateral agreement) or both parties (a bilateral collateral agreement) to provide collateral to guarantee performance under the agreement. Arrangements for marking positions to the market, measuring the collateral requirement, moving collateral around and even providing a physical location for holding the collateral are not standardized across markets.

Glossary * C