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haircut finance

Spanish translation: haircut ( descuentos)

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:haircut
Spanish translation:haircut ( descuentos)
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08:35 Oct 21, 2000
English to Spanish translations [PRO]
Bus/Financial
English term or phrase: haircut finance
Context structured prefinance of commodities

. Banks in this market will generally be reasonably generous in their application of Loan-to-Value haircuts to the face value of the collateral value when it is in the form of LME warrants
LUISA Fernandez-Sierra
Spain
Local time: 14:26
Descuentos o Haicuts
Explanation:
HOla

Puede utilizat tanto descuentos como "haircuts". Vea el ejemplo a seguir, sacado del sitio en referencia.

En la práctica, la respuesta es igualmente sencilla: toma tus acciones al precio del cierre del día de hoy y aplícales un descuento (haircut) preestablecido de acuerdo a algún criterio de riesgo. El resultado será el capital que se debe acreditar a la casa de bolsa por su tenencia accionaria. En Estados Unidos, por ejemplo, se utiliza con algunas excepciones un haircut de 15%. En México utilizamos haircuts de 40%, 60% 100% dependiendo del grado de liquidez de las acciones. Cuando los haircuts están bien calculados, realmente reflejan el valor esperado de recuperación de la cartera accionaria. El proceso debe ser sencillo pero razonablemente seguro...

EN el sition del Banco de España, utilizan la palabra "haircuts".

Cordialmente desde Brasil
Bruno Magne
Selected response from:

Bruno Magne
Local time: 11:26
Grading comment
Thanks for all the replies, which were useful in their own way. I do not find fair to be able to grade just one reply. This was was "more" helpful, because it provided an example on the language aI had to translate and confirm that an authority left it in English
4 KudoZ points were awarded for this answer

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Summary of answers provided
nadescuentosxxxTransOl
naThree definitionsxxxLia Fail
naDescuentos o Haicuts
Bruno Magne


  

Answers


27 mins
Descuentos o Haicuts


Explanation:
HOla

Puede utilizat tanto descuentos como "haircuts". Vea el ejemplo a seguir, sacado del sitio en referencia.

En la práctica, la respuesta es igualmente sencilla: toma tus acciones al precio del cierre del día de hoy y aplícales un descuento (haircut) preestablecido de acuerdo a algún criterio de riesgo. El resultado será el capital que se debe acreditar a la casa de bolsa por su tenencia accionaria. En Estados Unidos, por ejemplo, se utiliza con algunas excepciones un haircut de 15%. En México utilizamos haircuts de 40%, 60% 100% dependiendo del grado de liquidez de las acciones. Cuando los haircuts están bien calculados, realmente reflejan el valor esperado de recuperación de la cartera accionaria. El proceso debe ser sencillo pero razonablemente seguro...

EN el sition del Banco de España, utilizan la palabra "haircuts".

Cordialmente desde Brasil
Bruno Magne


    Reference: http://www.sis.uia.mx/~idea/docs/indices/articulo/idea10/ins...
Bruno Magne
Local time: 11:26
Native speaker of: Native in FrenchFrench, Native in PortuguesePortuguese
PRO pts in pair: 315
Grading comment
Thanks for all the replies, which were useful in their own way. I do not find fair to be able to grade just one reply. This was was "more" helpful, because it provided an example on the language aI had to translate and confirm that an authority left it in English

Peer comments on this answer (and responses from the answerer)
ZoeZoe
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42 mins
Three definitions


Explanation:

This definition (web ref below)from a glossary -->

Haircut: The difference between the market value of a mortgage and the amount of money a lender will advance against it.

HAIRCUT - This term describes the way brokers and clients protect themselves from market risk in doing repos. An entity wanting to finance the purchase of $100 million in Treasury bonds may borrow just $98 million of the money. The two percent difference between the amount of securities purchased and the amount of money borrowed is the haircut. Similarly, an entity looking to borrow $100 million may need to provide, as collateral, Treasury securities with a market price equal to $102 million. (WHATCOM COUNTY - google under 'haircut finance defined')

The first component of our capital requirements with respect to short-term funded assets is the current aggregate over-collateralization amount or "haircut" that lenders require us to hold as capital. The haircut for each such mortgage asset is determined by the lender and is subject to change when short-term debt matures and rolls-over. Haircut levels on individual borrowings range from 2% to 30% on our residential and commercial mortgage assets, and currently average 4% for our short-funded portfolio as a whole. Should the market value of the pledged assets decline or haircut requirements increase, we will be required to deliver additional collateral to the lenders in order to maintain a constant over-collateralization level on our short-term borrowings. (Yahoo Finance REDWOOD TRUST, google under 'haitcut finance defined)

In your case, (Def.1) the market value of a commodity, rather than a mortgage? From what I understand it's a 'margen de securidad' but I think you may have to use the original term and explain it in a footnote in terms of why/how/who applies it. Or see the 3rd definition - 'over-colatteralisation amount' which appears to be synonymous, i.e 'la cantidad en exceso del colateral'




    Reference: http://207.174.229.221/resources/glossery.asp
xxxLia Fail
Spain
Local time: 14:26
Native speaker of: Native in EnglishEnglish
PRO pts in pair: 631

Peer comments on this answer (and responses from the answerer)
Leonardo Lamarche
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3 hrs
descuentos


Explanation:
In this case banks easily apply discounts on the loans given against the face (nominal) value of the collateral value (or additional warranties) in the case the collateral is LME warrant backed. Because the London Metal Exchange warrants are very solid secure financial instruments, they represent little risk for banks, thus "going for a haircut", going for a small risk at a small cost (discount).

I hope it helps

xxxTransOl
PRO pts in pair: 504
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