overcollateralization

noun

The act or process of overcollateralizing.

Scrabble 35
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Meanings

nounovercollateralization (countable and uncountable, plural overcollateralizations)

plural overcollateralizations

  1. countableuncountableThe act or process of overcollateralizing.
    1 more example

    The specific requirements for overcollateralization can vary depending on the type of loan or financial arrangement. Lenders often assess the risk profile of borrowers to determine the appropriate level of overcollateralization needed. For example, in mortgage-backed securities, the overcollateralization ratio may be higher to account for the potential volatility in the housing market.

    2024 January 28, Michael Taylor, “What Is Overcollateralized and How Does It Work?”, in Shifting Shares

Origin

From over- + collateralization.

Full word history & related roots →
Cite this entry
APA

overcollateralization. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/overcollateralization

MLA

“overcollateralization.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/overcollateralization. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “overcollateralization,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/overcollateralization.

Source: overcollateralization on Wiktionary, CC BY-SA 4.0.