collateralized
Upper-Intermediate (B2)
IPA: /kəˈlætəraɪzd/
KK: /kəˈlætəraɪzd/
adjective
Definition
Describing something that is secured by a pledge of assets or property to guarantee repayment or performance.
Example
The bank offered a loan that was collateralized by the borrower's house.
Conversation
Have you heard about those collateralized loans people are talking about?
Yeah, I think they’re pretty popular right now for buying houses.
I wonder how they actually work, though.
Basically, you use your property as security, so it’s less risky for lenders.
Synonyms & Antonyms
Synonyms
secured
guaranteed
backed
Antonyms
unsecured
risky
vulnerable
verb
Definition
To secure a loan or financial obligation by providing an asset as a guarantee that can be claimed if the obligation is not met.
Example
The bank required the loan to be collateralized with property to reduce their risk.
Tense Forms
Past: collateralized
Past Participle: collateralized
Conversation
Did you hear about the loan they collateralized with that property?
Yeah, it sounds like a smart move to secure the funds.
I wonder how they managed to get such a good deal on it.
Root Explanation
Collateralized → It is formed from "collateral" (from Latin "collateralis", meaning situated at the side) and "-ized" (a suffix meaning to make or to become). The word "collateralized" refers to the act of making something serve as collateral, or security for a loan, thus situating it alongside the obligation.
Memory Tip
Think of something being 'situated at the side' ('collateral') to serve as security for a loan, and the '-ized' means to make it so.
Visually Confused Words
lateralize