collateralize

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Collateralize

To offer an asset as a surety that a debt will be repaid. The asset may be kept by the lender until the debt is repaid, or the borrower may maintain possession with the proviso that the lender may take possession of the borrower defaults. For example, one collateralizes a mortgage loan with the real estate one purchases with the loan. If the loan is not repaid, the lender has the right to seize the real estate in question. See also: Lien.

collateralize

To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities.
References in periodicals archive ?
Growth in the collateralized reinsurance market has been propelled by ILS funds seeking to provide tailored coverage for ceding companies, and coverage for risks that may not be suited for or available from other ILS instruments.
The fastest-growing component is collateralized reinsurers, which is approximately $55 billion worth of capacity.
Liberty's reinsurance sidecar is fully collateralized which means that funds are almost always available to pay claims when losses occur.
The long-term secured rating of 'AAA' on the collateralized notes program and the 'AAA' rating on the inaugural issuance are equalized with PEFCO's Long-Term Issuer Default Rating (IDR) of 'AAA' and reflect the high quality of the collateral securing these notes.
* A $1,000,000 first mort gage loan collateralized by an approximately 6,200 s/f single-family residence located on Woodmere Blvd in Woodmere, Long Island.
The latest sales were from a $28.82 loan collateralized by exotic collateralized debt obligations backed by mortgage-backed securities held in the so-called Maiden Lane III facility.
The collateralized debt obligations to be auctioned were created by TCW Group Inc.
The Collateralized Murabahah will be a new low credit-risk financial instrument that enables collateralized interbank transactions in the Islamic Money Market in the country, the central bank said in a statement.
The company said that it has hired Erez Biala as global co-head of collateralized loan and collateralized debt obligations trading.
One investor grumbled incessantly during a session on collateralized reinsurance at a catastrophe bond conference in New York City in late January.
Judging by its content, the securities losses are related to such alphabet soup investments as ABS (asset-based securities), CDOs (collateralized debt obligations) and CMOs (collateralized mortgage obligations).
cases centering on the sale of risky securities backed by collateralized debt obligations (CDOs) or Auction Rate Securities (ARS), whose value collapsed during the credit crisis.

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