the amount of collateral

USAGE SUMMARY

The phrase "the amount of collateral" is correct and usable in written English.
It can be used in financial contexts to refer to the quantity or value of collateral that is pledged to secure a loan or obligation. Example: "Before approving the loan, the bank assessed the amount of collateral provided by the borrower."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

23 human-written examples

"The amount of collateral damage is huge.

The New York Times - Tech

AMS plans to transfer money to increase the amount of collateral, but that will not resolve the shortfall, UICI said.

The New York Times

Banks reduce their exposure to a possible loss by the amount of collateral they have collected from a trading partner.

The New York Times

The fund is required by law to reduce awards by the amount of "collateral income," such as life insurance and pensions, received by victims' families.

The New York Times

The decision by LCH.Clearnet, a clearing house, to raise the amount of collateral it requires to insure against losses on Italian bond trades caused yet more investor anxiety.

The Economist

In addition, regulatory changes have increased the amount of collateral required for these trades, further constraining the number of option sellers.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

35 human-written examples

By contrast, the bonds with the lowest amount of collateral have very poor ratings, and are sold to risk-loving investors.

Forbes

Among other things, clearing improves transparency, makes it harder for counterparties to avoid stumping up the right amount of collateral and provides an insurance policy against losses to the non-defaulting party to a trade.

The Economist

"These numbers do not take into account the unknown amount of collateral that Enron may have posted," said Paul Spraos, Swaps Monitor's president.

The New York Times

What separates social media from previous ad platforms is the tremendous amount of collateral data it produces.

Huffington Post

But this is why we need a system to shut these firms down with the least amount of collateral damage to innocent people and innocent businesses.

Huffington Post

Expert writing Tips

Best practice

When discussing financial agreements, clearly specify "the amount of collateral" required or provided to avoid ambiguity. For example, "The bank increased the amount of collateral required for the loan."

Common error

Avoid using "the amount of collateral" when you intend to specify the type of collateral. Instead of "the amount of collateral was real estate", say "the type of collateral was real estate".

Linguistic Context

The phrase "the amount of collateral" serves as a noun phrase that quantifies the value or extent of assets pledged as security for a loan or financial obligation. Ludwig AI confirms its correct usage in various contexts.

Expression frequency: Common

Frequent in

News & Media

45%

Science

30%

Formal & Business

10%

Less common in

Encyclopedias

5%

Wiki

5%

Reference

5%

Ludwig's WRAP-UP

In summary, "the amount of collateral" is a common and grammatically correct phrase used to quantify the assets pledged as security in financial transactions. Ludwig AI confirms its validity, highlighting its frequent occurrence in news, science, and formal business contexts. While alternatives like "the quantity of collateral" or "the value of the collateral" exist, it's crucial to maintain clarity and specify the intended meaning when discussing financial agreements. This phrase helps define the level of security in loans and other financial arrangements, influencing risk assessment and lending decisions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

the quantity of collateral

Replaces "amount" with "quantity", emphasizing the numerical aspect of the collateral.

the value of the collateral

Focuses on the monetary worth of the collateral instead of the sheer amount.

the extent of collateral

Highlights the scope or range of the collateral provided.

the level of collateral

Indicates the degree or standard of collateral required or provided.

the size of the collateral

Refers to the physical dimensions or scale of the collateral.

collateral volume

A more concise way of expressing the quantity of collateral.

the margin of collateral

Emphasizes the buffer or safety net created by the collateral.

the deposit of collateral

Replaces amount with deposit and emphasize on the placed collateral.

degree of collateralization

Expresses to what extent something is covered by collateral.

collateral assets

Emphasizes the assets used as collateral.

FAQs

How is "the amount of collateral" determined in a loan agreement?

The amount of collateral is typically determined by the lender based on the loan's risk, the borrower's creditworthiness, and the value of the assets being pledged. It's designed to mitigate the lender's potential losses if the borrower defaults.

What happens if the value of the collateral decreases below the agreed "amount of collateral"?

If the value of the collateral decreases significantly, the lender may require the borrower to provide additional collateral to maintain the agreed-upon coverage. This is known as a margin call.

What are some alternatives to "the amount of collateral"?

You can use alternatives like "the quantity of collateral", "the value of the collateral", or "the extent of collateral", depending on the specific context.

Is there a difference between "the amount of collateral" and "the type of collateral"?

Yes, "the amount of collateral" refers to the quantity or value of the assets pledged, while "the type of collateral" specifies the nature of the assets, such as real estate, securities, or equipment. It's important not to confuse the two.