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Sicherheitsabschlag

English translation: haircut; safety margin

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Sicherheitsabschlag
English translation:haircut; safety margin
Entered by: Vesna Zivcic
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13:10 Mar 13, 2001
German to English translations [PRO]
Bus/Financial - Accounting
German term or phrase: Sicherheitsabschlag
for valuation of an overhead adjustment for a balance sheet: "Durchschnitt der letzten 3 Jahre ./. 10% Sicherheitsabschlag = Gemeinkostenkorrektur."
Gregory Mehrten
United States
Local time: 14:41
haircut
Explanation:
I must disagree with my colleaugues who prefer the term "safety margin". It is a broader term than "haircutwhich is used on a balance sheet.

Here is an excerpt from an online test on finance:

"16. The safety margin kept by the bank on loan against liquid assets is called:

A. Haircut

B. Line of credit

C. Factoring

D. Filed warehousing"

Needles to say, after you have checked your answers, the right answer is "haircut"
Selected response from:

Vesna Zivcic
Local time: 20:41
Grading comment
Thanks!
4 KudoZ points were awarded for this answer

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Summary of answers provided
nahaircut
Vesna Zivcic
narisk discount OR risk allowancegangels
naWho is the zero genius?
Mats Wiman
nahaircut or marginAnnie Robberecht, C. Tr.
nasafety marginFuad Yahya
nahaircut
Vesna Zivcic
nasafety marginprofile removed
nasafety reduction
Mats Wiman


  

Answers


4 mins
safety reduction


Explanation:
reduction for safety's sake


    Gabler Wirtschaftlexikon+MW
Mats Wiman
Sweden
Local time: 20:41
Native speaker of: Native in SwedishSwedish
PRO pts in category: 14

Peer comments on this answer (and responses from the answerer)
profile removed

Ulrike Lieder

CarDel

Vesna Zivcic

Davorka Grgic
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1 hr
haircut


Explanation:
Hier sind einige aussagekräftige Zitaten von Google:

"Sicherheitsabschlag (haircut): Siehe Bewertungsabschlag (valuation haircut)."

Federal Reserve Bank of New York:

"... of financial assets will be reported on the balance sheet in Schedule HC, item 11, "Other assets." In ... commonly referred to as the 10 percent haircut. ..."


    Reference: http://www.ny.frb.org/bankinfo/circular/sr9440.html
    Reference: http://www.uni-wuppertal.de/FBG/fiwi/ezb.html
Vesna Zivcic
Local time: 20:41
Native speaker of: Croatian
PRO pts in category: 8

Peer comments on this answer (and responses from the answerer)
Annie Robberecht, C. Tr.

Fuad Yahya

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Ulrike Lieder
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1 hr
safety margin


Explanation:
The suggestions of my fellow colleagues are quite nice, but not accurate. One claims to have found your term in Gabler's dictionary - that's not the case, I am afraid.

The only dictionary that has "Sicherheitsabschlag" is Dictionary of Banking and Stock Trading by Zahn. And "safety margin" is the term to be used.

Good luck!

profile removed

Peer comments on this answer (and responses from the answerer)
Fuad Yahya

xxxlone

Vesna Zivcic
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2 hrs
safety margin


Explanation:
Here is a definition of "Sicherheitsabschlag" that I found in DeutscheHyp (http://www.deutschehyp.de/lexikon/index.html):

Sicherheitsabschlag

Für die Ermittlung des Beleihungswertes wird von der Summe der Werte für
- Gebäude,
- gesondert zu veranschlagende Bauteile
- Außenanlagen,
- Baunebenkosten,

ein Sicherheitsabschlag (Risikoabschlag) abgezogen. Hierdurch sollen alle Besonderheiten bei einer Verwertung des Beleihungsobjektes berücksichtigt werden. Der Sicherheitsabschlag beträgt mindestens 10%.

I hope this sheds some light on it.

Fuad


    DeutscheHyp
Fuad Yahya
Native speaker of: Native in ArabicArabic, Native in EnglishEnglish

Peer comments on this answer (and responses from the answerer)
profile removed

Vesna Zivcic
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3 hrs
haircut or margin


Explanation:
Vesna-Z seems correct.

FIELD: Stock Exchange

"Haircut" is the formula used in the valuation of securities for the purpose of calculating a broker-dealer's net capital. The HAIRCUT varies according to the class of a security, its market risk, and the time to maturity.

Haircut: the difference between the market value of a security and its collateral value. Haircuts are taken by a lender of funds in order to protect the lender, should the need arise to liquidate the collateral, from losses owing to declines in the market value of the security. See margin.

Margin: margin has at least two meanings. In the futures/commodity markets, margin is a good faith deposit (of money, securities or other financial instruments) required by the futures clearing system to assure performance. In the equities markets, margin is a sum of money deposited by a customer when borrowing money from a broker to purchase shares. The money deposited with the broker is the difference between the purchase value of the shares and the collateral value of the shares. See haircut.

SEE FOLLOWING (Internet)
... for MSV and members in DBVs to apply a single haircut/margin to a category, rather than on a security by security basis, ...


    BANK FOR INTERNATIONAL SETTLEMENTS GLOSSARY
Annie Robberecht, C. Tr.
Local time: 20:41
Native speaker of: Native in FrenchFrench

Peer comments on this answer (and responses from the answerer)
Fuad Yahya

profile removed

Vesna Zivcic
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11 hrs
haircut


Explanation:
I must disagree with my colleaugues who prefer the term "safety margin". It is a broader term than "haircutwhich is used on a balance sheet.

Here is an excerpt from an online test on finance:

"16. The safety margin kept by the bank on loan against liquid assets is called:

A. Haircut

B. Line of credit

C. Factoring

D. Filed warehousing"

Needles to say, after you have checked your answers, the right answer is "haircut"


    Reference: http://www.mhhe.com/business/finance/bm/student/olc/ch185-qz...
Vesna Zivcic
Local time: 20:41
Native speaker of: Croatian
PRO pts in category: 8
Grading comment
Thanks!

Peer comments on this answer (and responses from the answerer)
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15 hrs
risk discount OR risk allowance


Explanation:
The connotation is general enough to fit a multitude of references

gangels
Local time: 12:41
Works in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 122

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108 days
Who is the zero genius?


Explanation:
see above


Mats Wiman
Sweden
Local time: 20:41
Native speaker of: Native in SwedishSwedish
PRO pts in category: 14
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Changes made by editors
Mar 17, 2015 - Changes made by Steffen Walter:
Field (specific)(none) » Accounting


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