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Meaning of “collateral deflation” in the English Dictionary

"collateral deflation" in Business English

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collateral deflationnoun [U]

uk   us   (also debt deflation) FINANCE
a ​situation in which collateral becomes less ​valuable: The most dangerous ​deflation is ​collateraldeflation where the ​value of the ​collateralunderlying the ​financialsystemplunges and destroys the ​networth of the ​bankingsystem.
(Definition of collateral deflation from the Cambridge Business English Dictionary © Cambridge University Press)
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