collateralization.

The use of assets pledged as security for a debt or other obligation.

Use it for

Words that belong together

• collateralization of debt
• degree of collateralization

On the page

Collateralization reduced the lender’s potential loss but did not eliminate default risk.

The analysis compared the degree of collateralization across otherwise similar loans.

Usage notes

Primary category: economics / business / social science. Forms: Usually uncountable. Legacy lexical fields mirror sense 1 only. Use numbered sense fields for all meanings. Established modern English lexical item. No separate regional spelling or grammatical inflection entry. Writing functions: financial analysis, risk evaluation, comparison, explanation. Disciplines: economics, finance, business. Commonness: uncommon.