OTC derivative series CDS, Bonds and Basis Trade :

As I wrote about central clearing some catastrophic bonds like to continue the series as lot of terminologies yet to be explored in this mammoth market of OTC derivatives. I had tried to accumulate few of them from various sources:
  • [h]ypothecation is when a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral but is “hypothetically” controlled by the creditor, who has a right to seize possession if the borrower defaults.