What is the Collateral Transfer Medium?

The ‘medium’ refers to the actual bank instrument used to convey the commitment to the Recipient of the Collateral Transfer facility…

What is the collateral transfer ‘medium’?

The ‘medium’ refers to the actual bank instrument used to convey the commitment to the Recipient of the Collateral Transfer facility. Since the collateral is remitted bank-to-bank, it is remitted in the form of a bank commitment, often in the form of a Letter of Guarantee or Bank Guarantee (BG) and sometimes, although not as common, in the form a Standby Letter of Credit (SBLC).