Business and Personal Finance Dictionary

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• EQUITIZE A MARGIN CALL
  
  Is an event whereby a previously unsatisfied margin call is eliminated by an effective transfer of ownership. In 1998, Long Term Capital Management transfered a portion of ownership to its creditors. In some respects, it was a debt for equity swap. The immediate benefit to the previous creditors is that the regulatory capital requirement is not impaired by a default. It also extends the horizon for position liquidation.
  
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