Marked-to-market

Marked-to-market

An arrangement whereby the profits or losses on a futures contract are settled each day.

Mark to Market

To record a change in the value of an asset or fund to reflect its current fair market value. Marking to market occurs on a daily basis and is used for a number of purposes. Notably, investors mark to market a portfolio or security to ensure that a margin account is meeting its minimum maintenance.
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As at 29 November 2009, National Bank of Abu Dhabi (NBAD) had US$345 million exposure to the Dubai World Group comprising the following:* US$ 114 million nominal invested in the Nakheel December 2009 Sukuk and marked Available for Sale and marked to market through equity; * US$ 6 million nominal in the same bond held in our Trading Portfolio and marked-to-market; * General corporate loans of US$ 100 million and US$ 125 million to Nakheel and Limitless respectively NBAD has no exposure to Dubai World itself.
* $114 million nominal invested in the Nakheel December 2009 Sukuk and marked Available for Sale and marked to market through equity * $6 million nominal in the same bond held in our Trading Portfolio and marked-to-market * General corporate loans of $100 million and $125 million to Nakheel and Limitless respectively
The marked-to-market price at which the security is deemed to have been sold becomes the new basis in the position.
Provided the hedge qualifies for hedge accounting under SFAS 52, the parent should record the hedge's marked-to-market adjustments directly to stockholders' equity (that is, the current translation account).
Credit exposures arising from these relationships consisted of the current marked-to-market value of the derivative transactions as well as the potential exposure that might arise from future changes in these market values (the potential future exposure or PFE).
It's like breaking a material down to its molecular structure." A highly charged issue to come, he added, is marked-to-market accounting for investment securities.