What is Rehypothecation?
In simple terms, rehypothecation is the re-use of collateral that has been received by one party and then delivered onwards to another third-party..
When does it happen?
Rehypothecation in capital markets is not a new phenomenon and has existed in derivatives transactions, stock loans and repos, to name a few examples..
Why does it matter?
Rehypothecation is an important driver of liquidity in capital markets, but also gives rise to additional risks and is often poorly understood by market counterparties..
Understanding Rehypothecation
The goal of this web-site is to shed light on the practice of rehypothecation as well as collect and present market data in the various capital markets where rehypothecation is commonly practised.