collateralized
Backed by assets
Collateralized means secured by collateral—assets pledged to guarantee a loan or obligation.
If a borrower defaults, the lender can seize the collateral.
A collateralized loan might be backed by real estate, vehicles, or securities.
The term gained notoriety with collateralized debt obligations (CDOs), financial instruments that bundled mortgage loans and contributed to the 2008 financial crisis.
Secured home loan
- lienClaim securing debt
- pledgeBinding promise given
- securityProtection from threat
- encumbranceHindrance or legal claim
title · escrow · trustee · lienholder · guarantee · bond · securitization · underwriting
Borrowed money repaid later
- creditRecognition or payment deferral
- borrowingTemporary taking of another's
- leverageBorrowed capital for amplified returns
- capitalWealth used for investment
funding · liquidity · refinance · amortization · interest · creditworthiness · principal · maturity
Preset standard option
- exposureState of being unprotected
- counterpartyOther side in deals
- mitigationReduction of severity
- liquidationSelling assets for cash
insolvency · mark-to-market · volatility · downgrade · impairment · recovery · write-down · concentration
Pooled debt investment vehicle
- CMOSenior executive title abbreviation
- ABSAnti-lock braking system
- securitiesTradeable financial assets
- tranchePortion of grouped securities
derivatives · structured · asset-backed · receivables · obligations · pools · waterfall · issuer
mortgage
Secured home loan
encumbrance · title · escrow · trustee · lienholder · guarantee · bond · securitization · underwriting · foreclosure
loan
Borrowed money repaid later
- creditRecognition or payment deferral
- borrowingTemporary taking of another's
- leverageBorrowed capital for amplified returns
capital · funding · liquidity · refinance · amortization · interest · creditworthiness · principal · maturity · origination
default
Preset standard option
- exposureState of being unprotected
- counterpartyOther side in deals
- mitigationReduction of severity
liquidation · insolvency · mark-to-market · volatility · downgrade · impairment · recovery · write-down · concentration
CDO
Pooled debt investment vehicle
- CMOSenior executive title abbreviation
- ABSAnti-lock braking system
- securitiesTradeable financial assets
tranche · derivatives · structured · asset-backed · receivables · obligations · pools · waterfall · issuer · noteholder
- stuckjammed, clogged, trapped, stuck in mud, snowed in
- supportedsupported, backed, aided, helped out, assisted
collateralizeduncollateralized
Without pledged security
unsecured · unguaranteed · unbacked · unpledged · unencumbered
collateralizedunsecured
Not backed by collateral
naked · exposed · unprotected · high-risk · speculative