to collateralize
3
9.3
- verb
- /kəˈlætəˌrəlˌaɪz/
- Formal
:
colateralizar
- The company decided to collateralize the new project with company property to secure the loan.
- collateralized debt
- collateralized debt obligation
- collateralized loan
To sell short, you have to pony up the full capital to collateralize that trade.
- To sell short, you have to pony up the full capital to collateralize that trade.
- Now, as bad as that looks, a significant portion of China's lending is collateralized, in particular the loans to commodity exporting nations.
Examples
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How much bank debt is collateralized by potentially overvalued real estate?
Blog text (7) -
The banks combined thousands of mortgages and loans, including car loans, student loans, and credit card debt, to create complex derivatives called collateralized debt obligations, or CDOs.
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Gold, as a first order, is proof to others that we can collateralize and meet our obligations when necessary.
Blog text (8) -
The Fed is going to be buying paper that is collateralized by mortgages.
Blog text (29) -
You've now collateralized these other loans with what was protected and it's no longer protected.
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As explained above, RRPs are collateralized borrowings by the central bank from the private sector.
Academic text (2017) -
Money is a psychological phenomenon; it has no basis in reality until it is collateralized or exchanged for something tangible.
Blog text (3) -
Proximately, it comes from the willingness of people to mortgage their assets to allow a bank to make a well-collateralized loan.
Academic text (1991) -
Starting in 2002, some trust preferred security offerings were pooled and securitized by investment banks as collateralized debt obligations (CDOs).
Academic text (2018) -
The measures discussed above—reducing short-term capital inflows, increasing foreign exchange reserves, and establishing collateralized credit facilities—can all fill this essential role.
Academic text (1999)
Synonyms
55
5.6
Leave something with a shop that lends you money
Give something valuable to a pawnshop to get money
Give property like a car or house as security for a loan while keeping and using it
To protect a loan by using property that the lender can take if you do not pay
How Secured
Surface Forms
Morphology
collateralize = collateral (transparent) = collateral + ize
The verb is a straightforward verb-forming derivation from the noun 'collateral' with the productive suffix '-ize', meaning 'to make or treat as collateral'.
Etymology
Collateralize comes from a Latin idea of 'side', the same root found in collateral and lateral. So, to collateralize a loan is like putting an asset 'to the side' as a guarantee—the asset stays beside the loan until you pay.