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

One of the few investments the funds own that they can easily sell in times of trouble are bonds of collateralized loan obligations, or CLOs, which are backed by bundles of corporate loans.

From The Wall Street Journal

Jefferies said Friday the loan was collateralized solely by receivables purchased from First Brands Group, which perpetrated a wide-ranging and well-concealed fraud.

From The Wall Street Journal

Worries about potential credit downgrades could also cool demand from managers of collateralized loan obligation funds—debt-funded vehicles that buy a significant share of speculative-grade business loans.

From The Wall Street Journal

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