Haircut and Leveraged: Difference between pages

Revision as of 15:48, 9 February 2019

Leveraged means financed with a relatively large proportion of debt.

1.

Leveraged cash flow is the cash flow taking account of debt.

2.

A leveraged company or business is one that is financed by a relatively large amount of debt.

Leveraged is also sometimes known as 'geared' or 'levered'.

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+Leveraged means financed with a relatively large proportion of debt.
-''Secured lending''.
-An amount deducted from the current market value of an asset used as collateral, to calculate the maximum amount of a loan secured against that asset.
+.
+Leveraged cash flow is the cash flow taking account of debt.
-'''Example 1'''
-Market value of the asset = £100,000.
+.
-Haircut = 2%.
+A leveraged company or business is one that is financed by a relatively large amount of debt.
-The maximum amount of the related secured loan would be:
-= £100,000 LESS 2%
-= £98,000
+''Leveraged is also sometimes known as 'geared' or 'levered'.''
-.
-The amount of a loss (or an expected loss) on asset, as a percentage of the total value of the asset.
+== See also ==
+* [[Gearing]]
+* [[Guide to risk management]]
+* [[Hedge fund]]
+* [[Leveraged finance]]
+* [[Leveraged takeover]]
-'''Example 2'''
+===Other links===
+[http://www.treasurers.org/node/8012 Masterclass: Measuring financial risk, Will Spinney, The Treasurer]
-Debt = EUR 200bn.
-Haircut =  50%.
+[[Category:Corporate_finance]]
+[[Category:Long_term_funding]]
-Then:
-Loss of EUR 100bn (= 50% ).
-Recovery of EUR 100bn.
-.
-A fee or commission, expressed as a percentage of the total value of the related transaction.
-== See also ==
-* [[Collateral]]
-* [[Repurchase agreement]]
-* [[Bilateral repurchase agreement]]
-* [[Margin]]
-* [[Tri-party repurchase agreement]]