CBLO. Collateralized Borrowing and Lending Obligation. Indian Money Market. Call/ Notice/ Term Money Repo Commercial Paper Certificate of Deposit Treasury Bills CBLO. Why Money Markets?. Fixed Income Market (over 1 year) For borrowing long term For investing long term
Collateralized Borrowing and Lending Obligation
• Is an instrument backed by Gilts as Collaterals
• Creates an Obligation on the borrower to repay the money borrowed along with interest on a predetermined future date;
• A Right and Authority to the lender to receive money lent along with interest on a predetermined future date or has the privilege to transfer the authority to anther person
• Creates a charge on the Collaterals deposited by the Borrower with CCIL for the purpose.