Haircut (finance)
From Citizendium - Reading time: 1 min
Haircut (finance) [r]: (i) A percentage that is subtracted from the par value of the assets that are being used as collateral (for example, the commission that is charged on a repo transaction). (ii) In a debt restructuring agreement, the percentage reduction in the amount of debt that is due to be repaid to the creditors. [e]
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