collateralize

American  

[kuh-lat-er-uh-lahyz] / kəˈlæt ər əˌlaɪz /

especially British, collateralise

verb (used with object)

collateralized, collateralizing

1. to secure (a loan) with collateral.

2. to pledge (property, securities, etc.) as collateral.

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Other Word Forms

• collateralization noun
• undercollateralized adjective

Etymology

Origin of collateralize

First recorded in 1940–45; collateral + -ize

Example Sentences

She explained in these pages that these steps are necessary because student loans aren’t collateralized.

From The Wall Street Journal

In addition to its direct lending strategy, the firm manages assets across strategies that include business development companies and collateralized loan obligations.

From The Wall Street Journal

Some business development companies boost returns—and risks—by making concentrated bets on high-yielding debt or by investing in complex financial structures, such as collateralized loan obligations, or CLOs.

From The Wall Street Journal

That includes reciprocal deposit networks, Federal Home Loan Bank letters of credit, and collateralized deposits, all of which allow financially sound banks to provide millions of dollars in insured coverage.

From Barron's

In the process, Goldman Sachs created a security so opaque and complex that it would remain forever misunderstood by investors and rating agencies: the synthetic subprime mortgage bond–backed CDO, or collateralized debt obligation.

From Literature