Effective margin

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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.

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The amelioration in operating results once again was driven by greater synergies, effective margin management and cost controls at most of the six U.

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