Collateralized assets are items of value that borrowers pledge to lenders as security for a loan. If the borrower fails to repay the loan, the lender has the right to seize these assets to recover their losses. Common examples of collateralized assets include real estate, vehicles, and financial securities. In finance, collateralized loans can lower the risk for lenders, often resulting in lower interest rates for borrowers. This practice is common in various lending scenarios, such as mortgages and auto loans, where the asset itself serves as a guarantee for the borrowed funds.