## Note 38.1 Credit risk continued 

## Collateral and credit enhancements held 

## Receivables from financial institutions 

Cash collateral on securities borrowed and reverse repurchase agreements balance is included in receivables from financial institutions. 

Securities borrowed and reverse repurchase agreements are fully collateralised with highly liquid securities as they require collateral to be in excess of the loaned amount. 

## Loan assets held at amortised cost 

## Residential mortgage loans 

Residential mortgages are secured by fixed charges over a borrower’s property. Further, Macquarie obtains lender’s mortgage insurance (LMI) to cover the majority of the mortgage portfolio to protect against a potential shortfall between the value of a repossessed property sold and the loan outstanding, including accrued interest. Substantially all the Americas portfolio consists of Canadian mortgages. Included in the mortgage loan balance is $14,025 million (2013: $10,774 million) which have been securitised by consolidated SPEs. Further, $3,853 million (2013: $5,863 million) are held by either a government-backed securitisation vehicle or financial institutions, not consolidated by the Consolidated Entity. 

