loan value

(redirected from Loan values)

Loan value

The maximum percentage of the value of securities that a broker can lend to a margin account customer, as dictated by the Federal Reserve Board in Regulation T.

Loan Value

The maximum amount an individual or company may borrow to buy securities on margin on a certain amount of collateral. The amount of a loan value is governed by Regulation T and by individual companies. See also: Maintenance Requirement.

loan value

The maximum amount that may be borrowed, using a security as collateral. If the Federal Reserve specifies an initial margin requirement of 50% under Regulation T, $5,000 in securities would have a loan value of $2,500.
References in periodicals archive ?
of the central bank, indicated that the tight monetary policy adopted in China has forced many cross-strait Taiwanese enterprises to resort to OBUs of Taiwanese banks for financing, hence raising both the asset and loan values of OBUs, whose total assets increased by US$1.
While the status of approvals has been uneven in recent months, loan values have been steadily climbing from their 4-year lows of 116,100 pounds in December 2008, suggesting that the UK housing sector may be embarking upon a slow but steady recovery.
The MPs also suggest loan values be increased to a "level that reflects the realistic costs of pursuing full-time study".
These determinations of the nominal and loan values are not the end of the evaluation process, however.
We saw last autumn that property and mortgage loan values can fall even in a strong real estate market with delinquencies at historical lows.
The economy is in recession, putting pressure on loan values while making deposits cheaper.
The small loan market - loan values under $2 million - is a growing opportunity for conduits and Wall Street.
So we see that loan values don't only move upward," said Brian Olasov, managing director with McKenna Long & Aldridge LLP, Atlanta.
It allows companies to raise the full value of their properties, unlike the discounted loan values provided by traditional mortgage financing.
Large-loan floating-rate deals also remain susceptible to downgrades with higher CMBS defaults forecast, as DebtX, New York, expects falling commercial real estate loan values to continue in CMBS in 2010, but at a slower pace.