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.

---

Other Word Forms

• collateralization noun
• undercollateralized adjective

Etymology

Origin of collateralize

First recorded in 1940–45; collateral + -ize

Example Sentences

The prices of bonds tied to collateralized loan obligations, investment vehicles that buy loans tied to junk-rated corporate debt, have fallen in recent weeks as British pension funds sell off their holdings to raise cash.

From New York Times

He also told clients the investment had little or no risk because the loans were collateralized dollar for dollar by investment securities put up by the businesses.

From Seattle Times

Banks package them into securities known as collateralized loan obligations, or CLOs, that are then sold to investors.

From Reuters

Regulators could raise objections to Musk potentially collateralizing the purchase with Tesla stock, according to former SEC lawyer Tyler Gellasch, who now runs Healthy Markets, a nonprofit organization advocating market reforms.

From Washington Post

“These defendants duped investors by offering them an intoxicating investment opportunity collateralized by valuable bottles of fine wine that turned out to be too good to be true,” Peace said.

From Seattle Times