Effective margin

Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.

Effective margin (EM)

Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.

Effective Margin

The profit margin produced from an asset if one assumes financing at a certain interest rate. That is, one calculates potential profits as if income remains constant but cost of funds varies. See also: Effective yield.
Mentioned in ?
References in periodicals archive ?
The amelioration in operating results once again was driven by greater synergies, effective margin management and cost controls at most of the six U.
There were only nine changes in the dollar amount of the margin requirement over that period, but if margin is expressed as a percentage of the contract value, then the effective margin requirement changes daily.

Full browser ?