underwriting
UK: ˈʌndəˌraɪtɪŋ | US: ˈʌndərˌraɪtɪŋ
n. 1. The process of evaluating and assuming financial risk, especially in insurance or securities issuance.
n. 2. The act of guaranteeing financial support for a project or venture.
vt. 3. To sign one's name beneath (a document); to endorse or guarantee.
The word "underwriting" originates from the practice of insurers or guarantors signing their names under the terms of a risk-sharing agreement (historically on maritime insurance contracts). The morpheme "writ" derives from Old English writan ("to write"), reflecting the literal act of writing one's name beneath terms. Over time, it evolved into a broader financial and legal term for risk assessment and guarantee.
The bank specializes in underwriting corporate bonds.
His firm handled the underwriting for the new insurance policy.
The success of the IPO depended on skilled underwriting.
She studied the underwriting guidelines before approving the loan.
Underwriting standards have tightened since the financial crisis.