Financial and business terms. 2012.
over-collateralization — ( OC) A type of credit enhancement used in some asset backed securities and some private mortgage backed securities. The principal amount of the collateral pledged for a given security exceeds to the principal amount of the security. American… … Financial and business terms
Collateralization — For uses of the word collateralization in finance, see Securitization and Cross collateralization. This article is about a pathological process. For the anastomosis between vessels in physiology, see Arteriovenous anastomosis. In medicine,… … Wikipedia
Collateralization — The act where a borrower pledges an asset as recourse to the lender in the event that the borrower defaults on the initial loan. Collateralization of assets gives lenders a sufficient level of reassurance against default risk, which allows loans… … Investment dictionary
cross-collateralization — USA cross collateralization, Also known as bootstrapping. A practice used in DIP financing arrangements in which a debtor grants its existing prepetition lender a security interest in assets acquired after the bankruptcy filing (such as… … Law dictionary
Securitization — is a structured finance process, which involves pooling and repackaging of cash flow producing financial assets into securities that are then sold to investors. The name securitization is derived from the fact that the form of financial… … Wikipedia
OC — ( overcollateralization/ over collateralization/ over collateralization) A type of credit enhancement used in some asset backed securities and some private mortgage backed securities. The principal amount of the collateral pledged for a given… … Financial and business terms
Credit rating agencies and the subprime crisis — Main article: Subprime mortgage crisis Credit rating agencies played a very important role at various stages in the subprime crisis. They have been highly criticized for understating the risk involved with new, complex securities that fueled the… … Wikipedia
securitization — The process and the result of pooling financial assets together and issuing liability and equity obligations backed by the resulting pool of assets to convert those assets into marketable securities. The underlying assets are usually, but always … Financial and business terms
bootstrapping — USA cross collateralization, Also known as bootstrapping. A practice used in DIP financing arrangements in which a debtor grants its existing prepetition lender a security interest in assets acquired after the bankruptcy filing (such as… … Law dictionary
Loan origination — is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application through disbursal of funds (or declining the application). Loan… … Wikipedia
