noun
General Slang
Haircut
· noun · finance
A discount applied to an asset's value, or a forced loss on a position.
0
Definitions
1
The discount a lender slaps on collateral before lending against it. Post 10 million in bonds, get a 5% haircut, borrow against 9.5. The buffer protects the lender if the collateral tanks before they can sell it.
“Repo desk gave us a 7% haircut on the corporates, killed the carry trade.”
by community
0
2
A forced loss bondholders or depositors eat in a restructuring. The Greek debt deal handed private creditors a haircut north of 50%. Polite word for getting clipped.
“Cyprus depositors above 100k took a brutal haircut in 2013.”
by community
0
Haircut In A Sentence
Repo desk gave us a 7% haircut on the corporates, killed the carry trade.
Cyprus depositors above 100k took a brutal haircut in 2013.
Origin & Usage
Variants
hair-cut
People Also Ask
What does haircut mean in finance?
In finance, a haircut is a discount applied to an asset's value, or a forced loss taken on a position.
How do you use haircut in a sentence?
A trader might say, "The lender applied a 20% haircut to the collateral," meaning they valued it 20% below market.
Comments 0