collateralized against

USAGE SUMMARY

The phrase "collateralized against" is correct and usable in written English.
It is typically used in financial contexts to describe securing a loan or obligation with collateral. Example: "The loan was collateralized against the company's assets to minimize the lender's risk."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

Through Mr. Wald, Merrill Lynch helped him to arrange a mortgage that covered the entire purchase price and was collateralized against his assets.

The New York Times

One reason for the new resilience is that Russian private sector debt is only a fraction of what it was in 2008, after the oligarchs had quietly bulked up on Western loans collateralized against their companies' shares.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

57 human-written examples

Moreover, the majority of traded interest rate derivatives are nowadays collateralized and the remuneration of the collateral is based on the overnight rate.

Probability, Uncertainty and Quantitative Risk

In addition, the Federal Reserve and the Treasury have jointly announced a facility that will lend against AAA-rated asset-backed securities collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration.

Forbes

Yves Smith writes:Readers no doubt recall that the Fed announced the creation of the Term Asset-Backed Securities Loan Facility, which will lend as much as $200 billion against new or recent vintage asset backed securities collateralized by "student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration".

The Economist

The fourth specification corresponds to a "pre-default" recovery scheme without collateralization, while the last one corresponds to a fully collateralized contract.

Probability, Uncertainty and Quantitative Risk

Those loans had been collateralized with Enron stock.

The New York Times

"Several clients who had loans that were collateralized by stock put collars on the stock they had so they could protect themselves against margin calls," said Cornelia Spring, Morgan's product manager for derivatives.

The New York Times

The counterparty's obligation is fully collateralized with high quality assets, guaranteeing the transaction's performance.

The New York Times

And not just into tricky mortgage investments, collateralized this or securitized that, but actual houses.

The New York Times

In this scenario, the new bonds could be collateralized with state property.

The New York Times

Expert writing Tips

Best practice

When using "collateralized against", clearly specify what assets are being used as collateral and what obligation they secure to avoid ambiguity.

Common error

Avoid assuming that all loans are "collateralized against" something. Some loans are unsecured and do not have any assets backing them.

Linguistic Context

The phrase "collateralized against" functions as a verb phrase with a preposition, indicating that something is being used as security for a loan or obligation. As Ludwig AI confirms, it's grammatically correct and suitable for formal contexts.

Expression frequency: Rare

Frequent in

News & Media

66%

Science

33%

Formal & Business

0%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, the phrase "collateralized against" is a grammatically sound construction primarily used in financial contexts to denote the securing of an obligation with specific assets. While not exceedingly common, as supported by Ludwig's examples, it is correct and particularly applicable in professional and formal communication. Ludwig AI confirms the phrase's validity, indicating that it is suitable for describing financial arrangements where assets are pledged as security. Consider alternatives like "secured against" or "backed by" for nuanced meaning.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

secured against

This alternative emphasizes the act of making something safe or protected, similar to providing collateral.

backed by

This alternative suggests that something is supported or guaranteed by an asset, conveying a similar meaning of security.

protected by

Focuses on the aspect of shielding from risk or loss, akin to the protection collateral offers.

guaranteed by

Highlights the assurance provided by the collateral, promising fulfillment of an obligation.

insured against

This option indicates protection through insurance, offering a financial safety net.

mortgaged against

This is a more specific phrase, implying a debt secured by real estate.

pledged as security for

This alternative describes the formal act of offering something as collateral.

held as collateral for

This phrase indicates that something is being kept as a guarantee for repayment.

covered by

This term suggests a broader sense of protection or security, not necessarily financial.

underwritten by

This option implies financial backing and assumption of risk by an underwriter.

FAQs

How is "collateralized against" used in finance?

In finance, "collateralized against" describes a loan or financial obligation that is secured by assets. If the borrower defaults, the lender can claim the assets to recover losses. For example, a mortgage is often "collateralized against" a property.

What are some alternatives to the phrase "collateralized against"?

Alternatives include "secured against", "backed by", or "guaranteed by". The best choice depends on the specific context.

Is it grammatically correct to say "collateralized against"?

Yes, "collateralized against" is grammatically correct and commonly used in financial and legal contexts to indicate that an obligation is secured by collateral.

What's the difference between "collateralized against" and "secured by"?

While similar, "collateralized against" emphasizes the specific action of providing collateral, while "secured by" focuses on the state of being protected by collateral. The difference is subtle and often interchangeable.