nantir une obligation

English translation: to collateralis/ze a debt obligation

17:31 Nov 1, 2020
French to English translations [PRO]
Bus/Financial - Investment / Securities
French term or phrase: nantir une obligation
T&Cs / Prospectus concerning an investment fund (based in Luxemburg)

"Risque de contrepartie

Le Compartiment peut être exposé au crédit d'une ou de plusieurs contreparties du fait de ses positions en investissement.

Dans la mesure où une contrepartie manque à ses obligations et que le Compartiment tarde à exercer ses droits sur les investissements de son portefeuille, il peut subir une baisse de la valeur de sa position, une perte de revenu et des coûts liés à ses droits.

Ces risques diminuent du fait que la contrepartie a nanti ces obligations."

NB compartiment here means "sub-fund".

I can understand nantir une obligation if obligation means "bond" or "debenture". But then how can one manquer à ses obligations? Is it possible to "pledge an obligation"? Maybe it means "secure" or "guarantee" or "underwrite" the obligation ...?
Mpoma
United Kingdom
Local time: 19:09
English translation:to collateralis/ze a debt obligation
Explanation:
I don't think this is a bond or debenture scenario, unless there is a ref. to an issue of such, but an obligation viewed as a debt or *(a/c) receivable* and that can be collateralised, so 'factored' by way of sale of the debt or secured by way of BrE charge.

For the difference between a physical pledge as a gage and a lien-tyoe retention of possession of intangibles as a nantissement, pls. refer to Bridge, but this may be a 'Bridge too Far'.

Obiter, I thought lien works as a verb in the USA, but would rather keep this alternative out of the mix.
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Adrian MM.
Austria
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Summary of answers provided
3 +4to collateralis/ze a debt obligation
Adrian MM.
4 +1guarantee [its] obligation[s].
TechLawDC
4to charge a bond
Francois Boye


Discussion entries: 1





  

Answers


1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
guarantee [its] obligation[s].


Explanation:
The "obligations" here are bonds, debentures, or other self-issued obligations. Here, "a nanti" means "has guaranteed" -- where here "guaranteed" means has posted security covering the obligations, or at least has guaranteed the performance of said obligations, such that the stated obligations are preferred obligations, taking precedence over obligations which certain other creditors may seek to enforce.


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Note added at 1 hr (2020-11-01 19:18:07 GMT)
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"Preferred obligations" are thus the opposite of "subordinated obligations".

TechLawDC
United States
Local time: 15:09
Specializes in field
Native speaker of: Native in EnglishEnglish

Peer comments on this answer (and responses from the answerer)
agree  Daryo: yes, but for the purpose of this ST the distinction "Preferred obligations" vs "subordinated obligations" is irrelevant / a distraction from the key point.
12 hrs
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3 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +4
to collateralis/ze a debt obligation


Explanation:
I don't think this is a bond or debenture scenario, unless there is a ref. to an issue of such, but an obligation viewed as a debt or *(a/c) receivable* and that can be collateralised, so 'factored' by way of sale of the debt or secured by way of BrE charge.

For the difference between a physical pledge as a gage and a lien-tyoe retention of possession of intangibles as a nantissement, pls. refer to Bridge, but this may be a 'Bridge too Far'.

Obiter, I thought lien works as a verb in the USA, but would rather keep this alternative out of the mix.

Example sentence(s):
  • CDOs, or collateralized debt obligations, are financial tools banks use to repackage individual loans into a product sold to investors on the secondary market.
  • A factor is an intermediary agent that provides cash or financing to companies by purchasing their accounts receivables.

    Reference: http://www.investopedia.com/terms/f/factor.asp
Adrian MM.
Austria
Native speaker of: Native in EnglishEnglish
PRO pts in category: 18
Grading comment
Selected automatically based on peer agreement.

Peer comments on this answer (and responses from the answerer)
agree  SafeTex
2 hrs
  -> Thanks and merci. Well-known, female tactical voters' silence means consent.

agree  Daryo
10 hrs
  -> Merci and thanks.

agree  EirTranslations
12 hrs
  -> Gracias and thanks.

agree  Steve Robbie
1 day 16 hrs
  -> Merci and thanks,
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6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
to charge a bond


Explanation:
to charge = to create a claim against property. Here the property is a bond.

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Note added at 9 hrs (2020-11-02 03:11:59 GMT)
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Charge

To impose a burden, duty, obligation, or lien; to create a claim against property; to assess; to demand; to accuse; to instruct a jury on matters of law. To impose a tax, duty, or trust. To entrust with responsibilities and duties (e.g., care of another). In commercial transactions, to bill or invoice; to purchase on credit. In Criminal Law, to indict or formally accuse.

An encumbrance, lien, or claim; a burden or load; an obligation or duty; a liability; an accusation. A person or thing committed to the care of another. The price of, or rate for, something.

A retail store may attach a finance charge to money owed by a customer on a store account.

Francois Boye
United States
Local time: 15:09
Native speaker of: Native in FrenchFrench
PRO pts in category: 36
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