haircut
- A percentage decrease from the stated value of assets, considering potential decreases in value prior to liquidation as a measure for computing asset value for capital, segregation, or margin requirements
- A severe market downturn led to larger haircuts in the assessed value of securities.
- As a result of economic instability, lenders began to apply larger haircuts to the collateral provided for loans.
- Fluctuating real estate prices may lead to substantial haircut when computing the value of property assets.
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