HAIRCUT

Haircut

In finance, a haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral. The size of the haircut reflects the perceived risk associated with holding the asset. However, the lender has a lien for the entirety of the asset. The higher the haircut, the safer the loan is for a lender. The haircut and the LTV add up to 100%.

The above text is a snippet from Wikipedia: Haircut (finance)
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haircut

Noun

  1. The act of cutting of the hair, often done professionally by a barber, hair stylist, or beautician.
  2. The way hair is cut.
  3. In a bankruptcy proceeding, the proportional reduction in the debt that will be paid to each creditor, based on an evaluation of the total debt owed and the total assets of the debtor.


The above text is a snippet from Wiktionary: haircut
and as such is available under the Creative Commons Attribution/Share-Alike License.

hair cut

Noun



The above text is a snippet from Wiktionary: hair cut
and as such is available under the Creative Commons Attribution/Share-Alike License.

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