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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.

 
 

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 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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