overcollateralize

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English

Etymology

From over- +‎ collateralize.

Verb

overcollateralize (third-person singular simple present overcollateralizes, present participle overcollateralizing, simple past and past participle overcollateralized)

  1. (transitive) To collateralize for too large an amount.
    • 2024 January 28, Michael Taylor, “What Is Overcollateralized and How Does It Work?”, in Shifting Shares:
      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.
    • 2024 November 29, Vince Quill, “New York regulator set to approve Ripple’s RLUSD stablecoin: Report”, in Cointelegraph:
      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.