Overcollateralization
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Overcollateralization

The practice or process of placing an asset as collateral on a loan where the value of the asset exceeds the value of the loan. For example, a person could pledge a farm (worth $10 million) on a loan for $5 million. Usually, however, the value of the asset only exceeds the value of the loan by 10-20%. Overcollateralization reduces the risk for the lender and improves the borrower's creditworthiness. It is used most commonly when a bond issuer wishes to improve its credit rating.

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No references found			The authority also makes direct loans from the governmental gross receipts tax to other borrowers' and includes these loan repayments in the trust estate securing the bonds, thereby overcollateralizing the bond-financed loans. New Mexico Finance Authority $21.1M Revenues Rated 'A' By Fitch -- ... by PR Newswire			over-and above money Over-Hedging Over-the-Counter Over-the-Counter Bulletin Board Over-the-Counter Market Over-the-Counter Option Over-the-Counter Stock Overadvance overage overall capitalization rate Overall FTC limitation Overall Market Price Coverage overall rate of return Overallotment Overallotment Option Overapplied Overhead Overbase Compensation Overbooked Overborrowed Overbought Overbought-Oversold Indicator overbuilding Overcapitalization Overcharge Overcollateralization Overcollateralizing Overdepreciation Overdraft Overdraft Cap Overdraft Checking Account Overdraft Facility Overdraft Protection Overdue Overexposure Overfull Employment Overfunded Pension Plan Overfunding Overgrowth Overhang Overhanging Bond Overhanging Supply Overhead Overhead Resistance Level Overheating overimprovement Overinvestment Overissue Overlap the Market Overlapping Debt Overlay Strategy Overmargined			Overclocking Overclocking overclocks overclosure overclothe overclothes overcloud overcloud overclouded overclouded overclouding overclouding overclouds overclouds Overcloy overcoat overcoat overcoat overcoat overcoat overcoating overcoating Overcoats Overcoats overcoding Overcold Overcollateralization Overcollateralize Overcollateralized Overcollateralizes Overcollateralizing Overcolor overcoloring overcome overcome overcome another’s resistence Overcome By Events overcome by liquor overcomer overcomes overcomes overcoming overcoming Overcoming Homophobia Meeting for Youth Overcoming the Odds overcommit overcommit overcommitment overcommitment overcommitments overcommitments overcommits overcommits overcommitted overcommitted overcommitting overcommitting overcompensate overcompensate overcompensated overcompensates

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Overcollateralization (redirected from Overcollateralizing)

Overcollateralization
(redirected from Overcollateralizing)