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Equitize a margin call

• Is an event whereby a previously unsatisfied margin call is eliminated by an effective transfer of ownership. In 1998, Long Term Capital Management transfereda portion of ownership to its creditors. In some respects, it was a debt for equity swap. The immediate benefit to the previous creditors is that the regulatory capital requirement is not impaired by a default. It also extends the horizon for position liquidation.

 
 

Follow this link for all the terms related to callmargin.

 
 Embedded terms in definition
 Call
Capital
Debt
Default
Equity swap
Equity
Event
Its
Liquidation
Long term
Long
Margin call
Margin
Position
Regulatory capital
Swap
 
 Related Terms
 

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