Backstopped: meaning, definitions and examples

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backstopped

 

[ ˈbækˌstɒpt ]

Verb
Context #1 | Verb

financial guarantee

Backstopped refers to the provision of a financial guarantee to ensure that certain obligations will be met. It is often used in financial contexts where an entity agrees to support another's financial commitments, thus providing security against potential losses.

Synonyms

guaranteed, secured, supported

Examples of usage

  • The bank backstopped the loan to mitigate risk.
  • Investors were relieved knowing that the government backstopped the project.
  • The insurance company backstopped the policy to reassure clients.

Translations

Translations of the word "backstopped" in other languages:

🇵🇹 garantido

🇮🇳 सहारा दिया गया

🇩🇪 unterstützt

🇮🇩 didukung

🇺🇦 підтримуваний

🇵🇱 wsparcia

🇯🇵 バックストップされた

🇫🇷 soutenu

🇪🇸 respaldado

🇹🇷 desteklenmiş

🇰🇷 지원된

🇸🇦 مدعوم

🇨🇿 podporovaný

🇸🇰 podporovaný

🇨🇳 得到支持的

🇸🇮 podprto

🇮🇸 studdur

🇰🇿 қолдау көрсетілген

🇬🇪 მხარდაჭერილი

🇦🇿 dəstəklənmiş

🇲🇽 respaldado

Etymology

The term 'backstop' originates from the world of baseball in the 19th century, referring to a barrier behind home plate that prevents balls from going too far away, essentially a safety measure. The term evolved over time to describe a kind of support or fallback in various contexts. In finance, it began to gain traction during the late 20th century, particularly in investment banking and corporate finance, where it referred to institutions or entities that provide guarantees for deals or financial instruments. By the early 21st century, it became commonplace in discussions involving government bailouts or guarantees, especially during economic downturns, signifying the role of external support in stabilizing financial markets.