Cash for Bond Lending

DEFINITION of 'Cash for Bond Lending'

A lending structure used in the Federal Reserve's Term Auction Facility (TAF), whereby borrowers receive a cash loan, by using all or a portion of their own portfolio of bonds as collateral.

BREAKING DOWN 'Cash for Bond Lending'

The cash for bond lending structure is not to be confused with the bond for bond lending structure, in which the borrower takes bonds instead of cash.

RELATED TERMS
  1. Bond for Bond Lending

    A lending structure used in the Federal Reserve's security lending ...
  2. Lending Facility

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  3. Term Auction Facility - TAF

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    A lending facility through the Federal Reserve that allows primary ...
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RELATED FAQS
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  4. When did people first start using collateral to secure loans?

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