overcollateralizing

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