A replacement for collateralized securities that is identical in terms of type, nominal value, description and amount to the ones originally provided. Typically, as in repo  transactions, the full title to collateralized securities passes from one party to another, and the transferee (the party who obtained title) will be obliged to deliver back equivalent securities. The lender is entitled to specify during the term of a loan, and upon occurrence of a corporate action affecting collateralized securities, the form of equivalent securities the lender prefers to receive on termination of the loan. The form can also be specified in the legal agreement.

Equivalent securities are also termed an equivalent collteral.