Collateral Value

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Dictionary Says

Definition of 'Collateral Value'

The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal from a qualified expert. If publicly traded securities are being used, then the current price of the securities is the collateral value. However, marketable securities are subject to the margin requirement restrictions mandated by the Federal Reserve Board.
Investopedia Says

Investopedia explains 'Collateral Value'

In most cases, the amount of the loan given will not exceed the collateral value of the assets, and will usually be less than its fair market value. This is because most lenders will assess collateral property at its fire-sale value and not its actual cost or current value. This is for both the borrower's and lender's protection.
Search results for

'Collateral Value'

  • 5 Steps To Scoring A Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/08/mortgage-candidate.asp
    ... price. Collateral value is important to lenders, so it should be kept in
    mind when making an offer to purchase a property. (Read ...

  • Here The Banks Go Again

    http://stocks.investopedia.com/stock-analysis/2010/Here-The-Banks-Go-Again-BAC-C-MS-GS-HBAN0216.aspx
    ... The problem with lower collateral value is compounded by higher vacancy rates
    and falling rents for all classes of commercial real estate. ...

  • What is the haircut rate imposed by clearing corporations?

    http://www.investopedia.com/ask/answers/06/haircut.asp
    A haircut rate is a measure that reduces the value of any collateral used in a loan
    to ensure that when the effects of volatility and adverse price. ...

  • Securities Lending: Cause Of The Next Financial Crisis?

    http://www.investopedia.com/articles/stocks/09/securities-lending-concern.asp
    ... to turn a profit). Borrowers are required to put up collateral at least
    equal in value to the securities. (Learn more about short ...

  • Texas Ratio Rounds Up Bank Failures

    http://www.investopedia.com/articles/fundamental-analysis/08/texas-ratio.asp
    ... No ratio is perfect, and the Texas ratio is no exception. For openers, the Texas
    ratio does not account for the potential value of collateral. ...

  • Series 7 Study Guide - Customer Accounts - Margin Account ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/hypothecation-margin-value.asp
    ... long market value. $ (2000) debit balance. $ 2000 credit balance. Hypothecation
    Process Through the process of hypothecation, the securities become collateral for ...

  • Value Picks Abound

    http://stocks.investopedia.com/stock-analysis/2010/Value-Picks-Abound-BP-COP-PM-BRK.B-AXP-KO0602.aspx
    ... Investing in an out-of-favor industry is what value investors do. ... Even if collateral
    financial damage spreads out to all the major oil companies from the BP ...

  • Value To Be Had In Europe

    http://stocks.investopedia.com/stock-analysis/2011/Value-To-Be-Had-In-Europe-IEV-EUFN-EPOL-EWG-EWN-DEO-UL0811.aspx
    ... which accepts debt instruments backed by the Irish government as collateral against
    ECB loans. ... Get Free Stock Analysis By Email. Finding This Value About 23% of ...

  • Book Value: How Reliable Is It For Investors?

    http://www.investopedia.com/articles/fundamental-analysis/09/book-value-basics.asp
    ... a car loan using his house as collateral, a company might use valuable assets to
    secure loans when it is struggling financially. In this case, the value of the ...

  • Series 63 Study Guide - The Foundation - The Uniform Securities ...

    http://www.investopedia.com/exam-guide/series-63/foundation/usa-uniform-securities-act-part-6.asp
    ... pledged are collateral for the loan. A stock dividend is not a sale because, at
    the time of the payment of such a dividend, there is no transfer of value. ...

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