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Home > QFINANCE Dictionary > Definition of marginal lender

Definition of

marginal lender

Finance

lender with lower limit on interest rate a lender who will make a loan only at or above a particular rate of interest

marginal lender - Related Articles

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    assets that cannot easily be converted to cash, such as plant and equipment, reputation, good will, and the present value of future growth opportunities. Short-term liabilities include short-term debt and liabilities which can be converted to debt, such as lender margin calls and trading counterparty
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    this are known as term repos. There are also open repos, which can be terminated by either side on a day’s notice. The lender normally receives a margin on the security, meaning that it is priced below market value, typically by 2% to 5%, depending on maturity. Repos are normally not for the smaller investor: in the primary market dealers frequently transact hundreds of millions of dollars, and in the secondary market repos of one million dollars are not uncommon.

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    and is given in good faith. Collateralizing receivables is a form of secured lending that gives companies short-term financing by selling their trade receivables or pledging receivables as collateral for a loan from a lender. Until the global financial crisis of 2008, receivables were securitized as well.

  • Issuing Corporate Debt

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    Clearly, investors would prefer that firms stay out of default or financial distress so that these costs, both explicit and implicit, are not incurred. However, as a corporation takes on more and more debt, the probability of bankruptcy increases. Hence, the marginal benefit of further increases
    By Steven Lowe

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Definitions of ’marginal lender’ and meaning of ’marginal lender’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’marginal lender’ and other financial terms with our online QFINANCE Financial Dictionary.

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