Overcollateralize
Definition, Meaning & Examples
Part of speech verb
Quick meaning: Overcollateralize is a verb meaning (transitive) To collateralize for too large an amount.
Meaning
(transitive) To collateralize for too large an amount.
Example Sentences
Companies seeking to raise capital through bond offerings may often be required to overcollateralize the bonds by pledging assets that surpass the bond’s face value.
The New York Department of Financial Services (NYDFS) is expected to approve Ripple Labs’ RLUSD stablecoin — an overcollateralized dollar-pegged stablecoin — in the coming days, sources revealed to Fox Business.
Word Forms
- overcollateralizes
- overcollateralizing
- overcollateralized
Related Words
Related dictionary entries include collateralise, collateralize, cross-collateralize, overconsolidate, overincarcerate, overlay.
Related Dictionary Tools
Sources & Attribution
FreeDictionaryAPI.com / Wiktionary · Original source · CC BY-SA 4.0
Dictionary data is provided by FreeDictionaryAPI.com and sourced from Wiktionary under its stated license.