Which term describes cash used to generate collateral yield in securities lending?

The term that describes cash used to generate collateral yield in securities lending is cash collateral. In the context of securities lending, when a borrower receives securities, they often provide cash collateral to the lender. This cash collateral can then be invested to generate a yield for the lender. This is an important aspect of securities lending, as it helps the lender earn a return on the cash they hold during the loan period.

Cash collateral is typically managed with the intention of preserving the principal amount while also generating income, which is one of the primary objectives in securities lending transactions. The ability to earn a yield on cash collateral is a significant advantage for lenders and is a key feature of the securities lending market. In contrast, other terms such as equity capital, borrowing capital, and investment capital refer to different forms and uses of financial resources not specifically tied to the mechanics of securities lending and cash collateral management.