verb
- present participle of collateralise; to pledge or use (an asset) as security for a loan or obligation
Usage: British English spelling; American English uses 'collateralizing'; finance/banking term
Examples
- The bank is collateralising the property to secure the mortgage.
- By collateralising their assets, the company obtained a lower interest rate on the loan.
- The investor considered collateralising her stock portfolio to fund the expansion.
- Financial institutions are collateralising various securities in the repo market.
- He avoided collateralising his home, preferring to keep it free and clear.