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Collateralized Borrowing and Lending Obligation - CBLO

Definition of 'Collateralized Borrowing and Lending Obligation - CBLO'


A money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of the loan. Collateralized borrowing and lending obligations (CBLOs) are used by those who have been phased out of or heavily restricted in the interbank call money market.

Investopedia explains 'Collateralized Borrowing and Lending Obligation CBLO'


CBLOs were developed by the Clearing Corporation of India (CCIL) and Reserve Bank of India (RBI). The details of the CBLO include an obligation for the borrower to repay the debt at a specified future date and an expectation of the lender to receive the money on that future date, and they have a charge on the security that is held by the CCIL.

Read more: http://www.investopedia.com/terms/c/cblo.asp#ixzz1sNgKr4r0

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