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Ah, I think I see what you mean now. The ability to liquidate collateral is the the stand-in for both creditworthiness and the mechanism for recouping their pr
by chucksmash 4y ago
Ah, I think I see what you mean now.
The ability to liquidate collateral is the the stand-in for both creditworthiness and the mechanism for recouping their principal. They would have no recourse to recover their funds if a crash were so drastic that they could not meaningfully liquidate collateral.