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About Haircut

In finance, a haircut is the difference between the current market value of an asset and the value ascribed to that asset for purposes of calculating regulatory capital or loan collateral. The amount of the haircut reflects the perceived risk of the asset falling in value in an immediate cash sale or liquidation. The larger the risk or volatility of the asset price, the larger the haircut.

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Not who you're looking for? Others named Haircut: 1995 film by Joaquim Sapinho · 1993 studio album by George Thorogood and the Destroyers · short story by Ring Lardner