The mystery for me is why so few operators tap margin credit which is tied to LIBOR.
Interest on margin credit is next to nothing, an easy cross to bear.
What I find so curious is that margin credit on the Big Board is a pittance, but no heavy hitters, anywhere.
Finally, the court held that Ultimate Holdings was used to perpetrate a wrong on its creditors, since it was little more than a part of the scheme to inflate the GENI stock, cash it out while at an artificially high value, and let the losses go to the brokerage firms who had extended margin credit to Ultimate Holdings.
The gross margin at Credit Suisse's wealth management business meanwhile fell to 114 basis points last year from 122 basis points in 2011, according to a regulatory filing.
Since stocks typically underperform in a deflationary environment, which leaves little room for margin expansion, Credit Suisse recommends cash and short-dated bonds.
By this March, however, the Carlyle, Blackstone and other equity partnerships started marking down their holdings, and Reijtenbagh's portfolio plummeted, essentially putting Reijtenbagh at risk of a Credit Suisse margin call.
Net, Net, MF Global was now repeatedly being called for more and more margin as both their company credit and the prices of the European bonds deteriorated rapidly.
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Additionally, an improved net interest margin and a reduced provision for credit losses led to the solid year-over-year growth.
But they must abide by Federal Reserve Board rules barring the use of the credit lines for purchasing or carrying margin stock.
His fictitious portfolio did not just comprise over-the-counter transactions with big banks, where agreed credit limits meant he could avoid margin calls.
Additionally, SDNY declined to interpret Rule 10b-16(b) as requiring UBS to provide advance notice to Willow Creek before it changed its margin rules (in apparent contradistinction to its credit terms and conditions ).
Distressed and defaulted paper, however, continued to knock the cover off the ball as credit opportunity investors sought out wide-margin opportunity.
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It is normal for bank lending to grow a bit faster than GDP in an emerging economy as the financial sector develops, but credit is outpacing GDP by an alarming margin in Argentina, Brazil, Hong Kong and Turkey.
If you see a line of credit attached you've probably got a margin account.
Credit also was used to buy stocks on margin, greatly increasing the market's volume and volatility.
When its credit rating was cut, a lot more margin was suddenly demanded and it had to turn to the public purse.
Instead of holding pledged stock in trust accounts for its customers, says the complaint, Credit Bancorp put the shares in cash or margin accounts, sold or borrowed against the stock and kept the proceeds, sometimes buying more securities with the money.
It all started in February, when California-based New Century Financial cratered after rising subprime loan delinquencies and margin calls from its lenders, which refused to offer more credit.
That's because selling a credit swap is equivalent to buying the corporate bond on margin.
Moreover, if people want to borrow to buy shares, raising margin requirements would probably send them to the plentiful other sources of credit.
Sales at First Data's other two businesses (payment processing for merchants and credit card services), which had a combined 21% operating margin, were flat.
Given these credit stats, it follows that second-lien loans are wide-margin product taken primarily by relative-value investors, arrangers say.
Meanwhile, Olam has budgeted for margin calls on its derivative hedges and is helping clients with letters-of-credit problems by selling smaller lots on a cash basis.
Credit standards are not dramatically looser, but any business that was right on the margin six months ago is probably bankable, by someone, today.
Nikolay Sobolev, Severstal's finance chief, adds that a further twist to the strategy is for Severstal to build a dealer network to sell high-margin services, such as adapting its vehicles for school and hospitals, providing full-service leasing arrangements and offering credit terms with local banks.
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