Remargining

Remargining

Putting up additional cash or securities after a margin call on a brokerage customer's margin account so that it meets minimum maintenance requirements.

Remargin

To place more cash or securities into a margin account as collateral following a margin call. In a margin call, a brokerage requires a client to remargin because the market value of the collateral currently in the account has fallen below the margin requirement, which is a least 25% (and sometimes 50%) of the value of the securities the client has purchased with borrowed money. Remargining occurs to force the client to comply with federal regulations and/or the brokerage's own rules.
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In addition to offering settlement and custodial services, clearing banks provide collateral management services, such as daily revaluation of assets, daily remargining of collateral, and allocation of the borrower's collateral to its lenders in accordance with the lenders' eligibility and risk management constraints.
TALF credit extensions therefore took the form of long-term nonrecourse loans secured by eligible collateral, not subject to mark-to-market or remargining requirements.
With remargining or recourse, a transitory but sharp price decline could force a levered fund to close out its position at a loss.
5 million of new equity enhances the company's liquidity position and provides financial flexibility to meet upcoming debt maturities and to fund potential joint venture (JV) remargining contributions as well as targeted termination of certain JV partnerships.
While the company has generated substantial cash flow from operations during the past six quarters, Standard Pacific's liquidity may be somewhat constrained as the company directs some of its cash to potential JV remargining contributions as well as targeted termination of certain JV partnerships.
During his tenure, he has also played a key role in remargining the business and further increasing the Company's profitability.