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Defeasance

Definition: [crh] The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Definition: Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet. In securities Definition: HREF="/?rd=trading">trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreedDefinition: . This is necessary to facilitate netting, and reduce counterparty risk exposure. The term has become popular recently, because of the growth ofDefinition: central counterparty clearing services in European cash equities markets.

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