haircut

Definitions

General English

Banking

  • noun the difference between the market value of a security and the amount lent to the owner using the security as collateral
  • noun an estimate of possible loss in investments

Economics

  • The loss of asset value for a creditor when a debtor defaults and then renegotiates downward the value of the loan. Sizable haircuts have been often been experienced by international lenders as the result ofdebt and financial crises.

Travel

  • noun an act of making hair shorter by cutting it
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