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Glite Dictionary
to rehypothecate

to rehypothecate

1 9.9
To use a customer's property given as loan security to back another loan
  • verb
  • /ˌriːhaɪˈpɒθɪkeɪt/
  • Specialized
: rehypotecar
  • When the market is unstable, banks often rehypothecate loans to mitigate their risk exposure.

Examples

  • In a bid to increase liquidity, many firms choose to rehypothecate collateral provided by their customers.

  • The Euro-denominated bond holdings which have been rehypothecated three or four times in The City.

    Blog text (6)

  • The AG, whoever it is, cannot prosecute Corzine for fraud because the customer deposits were legally hypothecated and rehypothecated to JP Morgan.

    Blog text (5)

  • The investment bank had to rehypothecate some of its clients' assets to secure additional financing.

Synonyms

to collateralize
vsto rehypothecate
  • Formal
4 9.3

To use something valuable as security for a loan

uses client pledged collateral specifically to back another loan instead of first pledge
to hypothecate
vsto rehypothecate
  • Specialized
1 9.9

Give property like a car or house as security for a loan while keeping and using it

applies to reusing client pledged collateral to secure another loan rather than possession rules
to repledge
vsto rehypothecate
  • Specialized
1 9.1

To use money or property again as security for a loan

uses collateral already pledged by a client to secure a further loan
to impawn
vsto rehypothecate
  • Archaic
9.9

Give something valuable to a pawnshop to get money

uses client pledged collateral again to secure an additional loan

Surface Forms

rehypothecate infinitive
rehypothecated past
rehypothecated past participle
rehypothecating present participle
rehypothecates third person singular

Morphology

rehypothecate = hypothecate (transparent) = re + hypothecate

Given knowledge of 'hypothecate', adding 're-' straightforwardly gives the meaning 'hypothecate again or reuse as collateral again'.

Etymology

Rehypothecate comes from re- ('again') and hypothecate, from ancient Greek words meaning 'under' and 'to place', so it literally means to 'place under again' as a pledge. That's why to rehypothecate is to use a client's pledged assets again as security for another loan.