To safeguard its capital and obtain insurance if the borrowers cannot repay their loans, Gamma...

Gamma Bank would typically accept the following as financial collateral:

Equities and Convertible Bonds:Included in a main market index due to their liquidity and value recognition.

Commercial Debts (Receivables):Owed to a company, which can be factored or used as collateral.

Mutual Fund Shares and Similar Investment Vehicles:Subject to daily quotes ensuring transparency and liquidity.

Unrated bonds, even if traded on a recognized exchange, carry higher uncertainty and lack the creditworthiness validation that rated bonds possess, making them less preferable as collateral.

References

Verified information on acceptable financial collateral from the document ​