for extra collateral

USAGE SUMMARY

The phrase "for extra collateral" is correct and usable in written English.
It can be used in financial or legal contexts when discussing additional security or guarantees provided in a transaction or agreement. Example: "The lender requested for extra collateral to ensure the loan would be secured against potential defaults."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

The affiliate, Carlyle Capital, said it had received margin calls totaling more than $37 million from seven financing parties on Wednesday and was unable to meet the demands for extra collateral to cover its market positions for four of them.

The New York Times

Two big institutions – a unit of the Carlyle Group, a large private equity firm, and Thornburg Mortgage – rattled investors and Fed officials last week by failing to satisfy margin calls, or demands for extra collateral, by creditors.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

57 human-written examples

That creates a vicious circle: as more borrowing is secured, fewer assets are available to other creditors in the event of default.A recent report by Morgan Stanley and Oliver Wyman suggested the move to clear derivatives trades alone could generate demand for $500 billion-$billion-$800 billion coflatextra

The Economist

But commodities markets had been on edge for days after the CME Group began to raise margin requirements at the end of last month for the silver market, requiring traders to put down extra collateral to compensate for the higher prices.

The New York Times

Late Friday, the company said it will need $2.9 billion for the termination payments and $4.5 billion in extra collateral.

Forbes

Financial intermediaries routinely require extra collateral when firms run into trouble.

The New York Times

If that happened, the bank would be forced to put up billions in extra collateral, eating into its liquidity.

The Economist

That has probably cost it an extra one-third of a percentage point on its funding, plus extra collateral to allow its trading counterparties to sleep more easily.

The Economist

Investors' desire for extra protection has made the contraction of credit worse.The same thing happened with collateral.

The Economist

Plead for extra credit?

The New York Times - Arts

Ask teachers for extra work?

The New York Times

Expert writing Tips

Best practice

When discussing financial agreements, be specific about what constitutes acceptable "for extra collateral". Clearly define the types of assets that can be used.

Common error

Avoid simply stating the need "for extra collateral" without specifying what type of collateral is acceptable. This can lead to misunderstandings and disputes later on.

Linguistic Context

The phrase "for extra collateral" functions as a prepositional phrase specifying the purpose or reason behind an action, typically within a financial or legal context. It indicates that something is done or required to obtain additional security.

Expression frequency: Rare

Frequent in

News & Media

50%

Formal & Business

50%

Science

0%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "for extra collateral" is a grammatically correct and usable prepositional phrase primarily employed in financial and legal settings to denote the provision or requirement of additional security. While relatively rare in general usage, it's most commonly found in news media and business contexts. Ludwig AI validated its correctness, emphasizing its role in risk mitigation. When using this phrase, ensure clarity regarding the specific types of assets that can serve as the "extra collateral" to avoid potential misunderstandings. Alternatives like "for supplementary collateral" or "as additional security" can be used depending on the specific nuance you want to convey.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

for supplementary collateral

Replaces "extra" with "supplementary" maintaining the meaning of additional security.

for augmented collateral

Uses "augmented" instead of "extra", implying an increase in the amount of collateral.

as additional security

Focuses on the function of the collateral as security, simplifying the phrase.

for increased collateralization

Emphasizes the act of providing more collateral rather than the collateral itself.

to provide further security

Shifts the focus to the action of providing security, rather than the collateral.

for more extensive guarantees

Replaces "collateral" with "guarantees", broadening the scope of security provided.

as added protection

Uses more general terms to convey the idea of extra security.

for enhanced security measures

Replaces "collateral" with "security measures", focusing on the broader protective actions.

to ensure better coverage

Shifts the focus to the outcome of having more collateral, which is better coverage against risk.

in order to mitigate risk

Focuses on the purpose of providing extra collateral, which is to reduce potential losses.

FAQs

When might a lender ask "for extra collateral"?

A lender might ask "for extra collateral" when they perceive a higher risk in a loan, such as during economic uncertainty or when the borrower's financial situation is unstable. It's a way to mitigate their potential losses.

What are some alternatives to saying "for extra collateral"?

You can use alternatives like "for supplementary collateral", "as additional security", or "for increased collateralization" depending on the context.

Is it always a bad sign if a lender asks "for extra collateral"?

Not necessarily. It often indicates that the lender is being cautious and proactive in managing risk. While it might suggest they see higher risk, it can also be a standard procedure for certain types of loans or borrowers.

What kind of assets can be used "for extra collateral"?

The types of assets acceptable "for extra collateral" can vary widely depending on the lender and the nature of the loan. Common examples include real estate, stocks, bonds, and other valuable assets.