What is third-party share of collateral value in SAP FS-CMS - Collateral Management System?

SAP Term: third-party share of collateral value

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A portion of the collateral value to which a third party is entitled to, on the basis of a syndicated loan agreement, a collateral pooling agreement, or a private written assignment.

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• Key Concepts: 
  Third-party share of collateral value is a term used in the SAP FS-CMS Collateral Management System. It refers to the portion of the collateral value that is held by a third party, such as a bank or other financial institution. This value is typically used to secure a loan or other financial transaction.
  
  How to use it: 
  The third-party share of collateral value is used to ensure that the lender has sufficient security for the loan. The lender will typically require that the borrower provide a certain amount of collateral, and the third-party share of this collateral will be held by the third party. This ensures that if the borrower defaults on the loan, the lender will still have some security for repayment.
  
  Tips & Tricks: 
  When setting up a loan or other financial transaction, it is important to consider the third-party share of collateral value. This will help ensure that the lender has sufficient security for repayment in case of default. It is also important to consider any additional costs associated with setting up and maintaining this type of security.
  
  Related Information: 
  The SAP FS-CMS Collateral Management System also includes other features such as automated collateral monitoring and reporting, automated margin calls, and automated collateral optimization. These features can help lenders manage their collateral more effectively and reduce their risk exposure.