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class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Financial terminology</div> <p>In <a href="/wiki/Finance" title="Finance">finance</a>, a <b>haircut</b> is the difference between the current <a href="/wiki/Market_value" title="Market value">market value</a> of an asset and the value ascribed to that asset for purposes of calculating <a href="/wiki/Regulatory_capital" class="mw-redirect" title="Regulatory capital">regulatory capital</a> or <a href="/wiki/Collateral_(finance)" title="Collateral (finance)">loan collateral</a>. 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. </p><p>For example, United States <a href="/wiki/Treasury_bills" class="mw-redirect" title="Treasury bills">Treasury bills</a>, which are relatively safe and highly liquid assets, have little or no haircut, whereas more volatile or less marketable assets might have haircuts as high as 50%. </p><p>Lower haircuts allow for more <a href="/wiki/Leverage_(finance)" title="Leverage (finance)">leverage</a>. Haircut plays an important role in many kinds of trades, such as <a href="/wiki/Repurchase_agreement" title="Repurchase agreement">repurchase agreements</a> (referred to in debt-instrument finance as "repo" but not to be confused with the concept of <a href="/wiki/Repossession" title="Repossession">repossession</a> denoted by that term in <a href="/wiki/Consumer_finance" class="mw-redirect" title="Consumer finance">consumer finance</a>) and <a href="/wiki/Repurchase_agreement#Reverse_repo" title="Repurchase agreement">reverse repurchase agreements</a> ("reverse repo" in debt-instrument finance). </p><p>In mass media,<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-beeb_2-0" class="reference"><a href="#cite_note-beeb-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-cnbc_3-0" class="reference"><a href="#cite_note-cnbc-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> as well as in <a href="/wiki/Economics" title="Economics">economics</a> texts,<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> especially after the <a href="/wiki/Financial_crisis_of_2007%E2%80%932008" class="mw-redirect" title="Financial crisis of 2007–2008">financial crisis of 2007–2008</a>,<sup id="cite_ref-kiev_6-0" class="reference"><a href="#cite_note-kiev-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> the term "haircut" has been used mostly to denote a reduction of the amount that will be repaid to creditors,<sup id="cite_ref-cnbc_3-1" class="reference"><a href="#cite_note-cnbc-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> or, in other words, a reduction in the <a href="/wiki/Face_value" title="Face value">face value</a> of a troubled borrower's debts,<sup id="cite_ref-beeb_2-1" class="reference"><a href="#cite_note-beeb-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>a<span class="cite-bracket">]</span></a></sup> as in "to take a haircut": to accept or receive less than is owed.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> In 2012, world media was reporting on the "biggest debt-restructuring deal in history",<sup id="cite_ref-liu_10-0" class="reference"><a href="#cite_note-liu-10"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: 1">: 1 </span></sup> which included the "very large haircut" of some "70 percent of <a href="/wiki/Par_value" title="Par value">par value</a>" of Greek state bonds, in <a href="/wiki/Net_present_value" title="Net present value">NPV</a> terms.<sup id="cite_ref-liu_10-1" class="reference"><a href="#cite_note-liu-10"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: 27">: 27 </span></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="SEC_net_capital_rule">SEC net capital rule</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=1" title="Edit section: SEC net capital rule"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The financial term "haircut" began, and continues to be used, as a reference to valuation discounts applied under the <a href="/wiki/U.S._Securities_and_Exchange_Commission" title="U.S. Securities and Exchange Commission">U.S. Securities and Exchange Commission</a>'s <a href="/wiki/Net_capital_rule" title="Net capital rule">net capital rule</a>. The net capital rule was adopted to provide safeguards for public investors by setting standards of financial responsibility to be met by <a href="/wiki/Broker-dealer" title="Broker-dealer">broker-dealers</a> and requires a broker-dealer to have at all times sufficient liquid assets to cover its current indebtedness. The SEC explained the role of haircuts in calculating net capital in 1967: </p> <blockquote><p>In computing "net capital," the rule requires deductions from "net worth" of certain specified percentages of the market values of marketable securities and future commodity contracts, long and short, in the capital and proprietary accounts of the broker or dealer, and in the "accounts of partners." (These deductions are generally referred to in the industry as "haircuts.") . . . The purpose of these deductions from "net worth," is to provide a margin of safety against losses incurred by a broker or dealer as a result of market fluctuations in the prices of such securities or future commodity contracts.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup></p></blockquote> <p>"Haircut" since has been extended to a number of other financial contexts, whenever it is desirable to show that some securities (typically debt securities) are being valued for some purpose at a discount. </p> <div class="mw-heading mw-heading2"><h2 id="ECB_use_of_haircuts">ECB use of haircuts</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=2" title="Edit section: ECB use of haircuts"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The <a href="/wiki/European_Central_Bank" title="European Central Bank">European Central Bank</a> applies a haircut to all securities offered as collateral. The size of the haircut depends on the riskiness and <a href="/wiki/Market_liquidity" title="Market liquidity">liquidity</a> of the security offered as collateral.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="LTCM_and_haircut_fees">LTCM and haircut fees</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=3" title="Edit section: LTCM and haircut fees"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The <a href="/wiki/Hedge_fund" title="Hedge fund">hedge fund</a> <a href="/wiki/Long_Term_Capital_Management" class="mw-redirect" title="Long Term Capital Management">Long Term Capital Management</a> (LTCM) saw spectacular losses that led to its dissolution in 1998. It had previously been able to trade with little collateral on positions that were considered safe by its lenders.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (January 2020)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading2"><h2 id="As_used_for_exchange-traded_products">As used for exchange-traded products</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=4" title="Edit section: As used for exchange-traded products"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>When used in the context of exchange traded products such as <a href="/wiki/Stock" title="Stock">stocks</a>, <a href="/wiki/Option_(finance)" title="Option (finance)">options</a>, or <a href="/wiki/Futures_contract" title="Futures contract">futures</a>, haircut is used interchangeably with the term <a href="/wiki/Margin_(finance)" title="Margin (finance)">margin</a>. It is the amount of capital required by a broker to maintain the positions currently in a trading account. If haircut exceeds the account's capital, the broker can either require additional capital (e.g., <a href="/wiki/Margin_call" class="mw-redirect" title="Margin call">margin call</a>), or liquidate positions until the haircut no longer exceeds available capital. </p> <div class="mw-heading mw-heading2"><h2 id="In_sovereign_debt_write-downs">In sovereign debt write-downs</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=5" title="Edit section: In sovereign debt write-downs"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>During the <a href="/wiki/Eurozone_crisis" class="mw-redirect" title="Eurozone crisis">Eurozone crisis</a>, and particularly in the context of the <a href="/wiki/Greek_financial_crisis" class="mw-redirect" title="Greek financial crisis">Greek financial crisis</a>, the term "haircut" acquired more specifically the meaning of state-debt holders receiving less than <a href="/wiki/Par_value" title="Par value">par</a>.<sup id="cite_ref-liu_10-2" class="reference"><a href="#cite_note-liu-10"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: 27">: 27 </span></sup> It's "the market's euphemism for wiping out a large portion of the debt owed to the creditors".<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p><p>The haircut agreed to by Greek-state debt holders was deemed "voluntary" by <a href="/wiki/Institute_of_International_Finance" title="Institute of International Finance">the banks</a>' chief negotiator <a href="/wiki/Charles_Dallara" title="Charles Dallara">Charles Dallara</a>, although, in order to convince domestic bond holders, the Greek government "made it clear that holdouts would not receive a sweeter deal", while it also declared that if the haircut was not completed, the Greek state would not be able to "further service its debt".<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=6" title="Edit section: Notes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-lower-alpha"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text">Not just state- but also corporate-debt.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup></span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=7" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239543626"><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFSafire2009" class="citation news cs1"><a href="/wiki/William_Safire" title="William Safire">Safire, William</a> (6 January 2009). <a rel="nofollow" class="external text" href="https://www.nytimes.com/2009/01/11/magazine/11wwln-safire-t.html?_r=0">"Haircut"</a>. <i><a href="/wiki/The_New_York_Times" title="The New York Times">The New York Times</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+New+York+Times&rft.atitle=Haircut&rft.date=2009-01-06&rft.aulast=Safire&rft.aufirst=William&rft_id=https%3A%2F%2Fwww.nytimes.com%2F2009%2F01%2F11%2Fmagazine%2F11wwln-safire-t.html%3F_r%3D0&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-beeb-2"><span class="mw-cite-backlink">^ <a href="#cite_ref-beeb_2-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-beeb_2-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="https://www.bbc.com/news/world-europe-33311405">"All Greek to you? Greece's debt jargon explained"</a>. <i><a href="/wiki/BBC" title="BBC">BBC</a></i>. 10 July 2015<span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=BBC&rft.atitle=All+Greek+to+you%3F+Greece%27s+debt+jargon+explained&rft.date=2015-07-10&rft_id=https%3A%2F%2Fwww.bbc.com%2Fnews%2Fworld-europe-33311405&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-cnbc-3"><span class="mw-cite-backlink">^ <a href="#cite_ref-cnbc_3-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-cnbc_3-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFClinch2015" class="citation news cs1">Clinch, Mark (19 August 2015). <a rel="nofollow" class="external text" href="https://www.cnbc.com/2015/08/19/why-the-imf-is-wrong-on-a-greek-debt-haircut.html">"Why the IMF is wrong on a Greek debt haircut"</a>. <i><a href="/wiki/CNBC" title="CNBC">CNBC</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=CNBC&rft.atitle=Why+the+IMF+is+wrong+on+a+Greek+debt+haircut&rft.date=2015-08-19&rft.aulast=Clinch&rft.aufirst=Mark&rft_id=https%3A%2F%2Fwww.cnbc.com%2F2015%2F08%2F19%2Fwhy-the-imf-is-wrong-on-a-greek-debt-haircut.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFBrighamHouston2011" class="citation book cs1">Brigham, Eugene F.; Houston, Joel F. (2011). <i>Fundamentals of Financial Management</i>. Cengage Learning. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0538477116" title="Special:BookSources/978-0538477116"><bdi>978-0538477116</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Fundamentals+of+Financial+Management&rft.pub=Cengage+Learning&rft.date=2011&rft.isbn=978-0538477116&rft.aulast=Brigham&rft.aufirst=Eugene+F.&rft.au=Houston%2C+Joel+F.&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFBlundell-WignallSlovik2011" class="citation journal cs1">Blundell-Wignall, Adrian; Slovik, Patrick (February 2011). <a rel="nofollow" class="external text" href="https://www.oecd.org/greece/46970598.pdf">"A Market Perspective on the European Sovereign Debt and Banking Crisis"</a> <span class="cs1-format">(PDF)</span>. <i>Financial Market Trends</i>. <b>2010</b> (2). <a href="/wiki/OECD" title="OECD">OECD</a>: 87–108.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Financial+Market+Trends&rft.atitle=A+Market+Perspective+on+the+European+Sovereign+Debt+and+Banking+Crisis&rft.volume=2010&rft.issue=2&rft.pages=87-108&rft.date=2011-02&rft.aulast=Blundell-Wignall&rft.aufirst=Adrian&rft.au=Slovik%2C+Patrick&rft_id=https%3A%2F%2Fwww.oecd.org%2Fgreece%2F46970598.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-kiev-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-kiev_6-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="https://www.kyivpost.com/article/content/ukraines-economic-and-financial-crisis/reuters-ukraine-creditors-debt-plan-shows-bond-haircut-inevitable-389863.html">"Ukraine creditors' debt plan shows bond haircut inevitable"</a>. <a href="/wiki/Reuters" title="Reuters">Reuters</a>. 29 May 2015<span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.atitle=Ukraine+creditors%27+debt+plan+shows+bond+haircut+inevitable&rft.date=2015-05-29&rft_id=https%3A%2F%2Fwww.kyivpost.com%2Farticle%2Fcontent%2Fukraines-economic-and-financial-crisis%2Freuters-ukraine-creditors-debt-plan-shows-bond-haircut-inevitable-389863.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="https://nypost.com/2016/08/22/private-equity-firm-bosses-to-get-370m-windfall-in-caesars-mess/">"Private equity firm bosses to get $370M windfall in Caesars mess"</a>. <i><a href="/wiki/New_York_Post" title="New York Post">New York Post</a></i>. 22 August 2016.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=New+York+Post&rft.atitle=Private+equity+firm+bosses+to+get+%24370M+windfall+in+Caesars+mess&rft.date=2016-08-22&rft_id=https%3A%2F%2Fnypost.com%2F2016%2F08%2F22%2Fprivate-equity-firm-bosses-to-get-370m-windfall-in-caesars-mess%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://corporatefinanceinstitute.com/resources/knowledge/finance/haircut/">"What is a Haircut (in finance)?"</a>. Corporate Finance Institute<span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=What+is+a+Haircut+%28in+finance%29%3F&rft.pub=Corporate+Finance+Institute&rft_id=https%3A%2F%2Fcorporatefinanceinstitute.com%2Fresources%2Fknowledge%2Ffinance%2Fhaircut%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-liu-10"><span class="mw-cite-backlink">^ <a href="#cite_ref-liu_10-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-liu_10-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-liu_10-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFLiuBergthalerGiddingsKosonen2013" class="citation journal cs1">Liu, Yan; Bergthaler, Wolfgang; Giddings, Andrew; Kosonen, Amanda; Papaioannou, Michael; Grigorian, David; Guscina, Anastasia; Presciuttini, Gabriel; Tsuda, Takahiro; Baqir, Reza (26 April 2013). <a rel="nofollow" class="external text" href="https://www.imf.org/external/np/pp/eng/2013/042613.pdf">"Sovereign Debt Restructuring: Recent Developments and Implications"</a> <span class="cs1-format">(PDF)</span>. <i>Policy Papers</i>. <a href="/wiki/IMF" class="mw-redirect" title="IMF">IMF</a><span class="reference-accessdate">. Retrieved <span class="nowrap">30 June</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Policy+Papers&rft.atitle=Sovereign+Debt+Restructuring%3A+Recent+Developments+and+Implications&rft.date=2013-04-26&rft.aulast=Liu&rft.aufirst=Yan&rft.au=Bergthaler%2C+Wolfgang&rft.au=Giddings%2C+Andrew&rft.au=Kosonen%2C+Amanda&rft.au=Papaioannou%2C+Michael&rft.au=Grigorian%2C+David&rft.au=Guscina%2C+Anastasia&rft.au=Presciuttini%2C+Gabriel&rft.au=Tsuda%2C+Takahiro&rft.au=Baqir%2C+Reza&rft_id=https%3A%2F%2Fwww.imf.org%2Fexternal%2Fnp%2Fpp%2Feng%2F2013%2F042613.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text">Net Capital Requirements for Brokers and Dealers - Interpretation and Guide, Release Nos. ASR-107, 34-8024, 32 Fed. Reg. 856, 1967 WL 88933 (Jan. 18, 1967).</span> </li> <li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.ecb.int/pub/pdf/other/riskcontrolframeworken.pdf">ECB Risk control framework</a></span> </li> <li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFParkinson2011" class="citation news cs1">Parkinson, David (12 July 2011). <a rel="nofollow" class="external text" href="https://www.theglobeandmail.com/report-on-business/international-business/rollover-haircut-greece-faces-ugly-choices/article586662/">"Rollover? Haircut? Greece faces ugly choices"</a>. <i><a href="/wiki/The_Globe_and_Mail" title="The Globe and Mail">The Globe and Mail</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+Globe+and+Mail&rft.atitle=Rollover%3F+Haircut%3F+Greece+faces+ugly+choices&rft.date=2011-07-12&rft.aulast=Parkinson&rft.aufirst=David&rft_id=https%3A%2F%2Fwww.theglobeandmail.com%2Freport-on-business%2Finternational-business%2Frollover-haircut-greece-faces-ugly-choices%2Farticle586662%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> <li id="cite_note-14"><span class="mw-cite-backlink"><b><a href="#cite_ref-14">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFWautelet2013" class="citation web cs1">Wautelet, Patrick R. (2 July 2013). <a rel="nofollow" class="external text" href="https://orbi.uliege.be/bitstream/2268/160460/1/Wautelet.pdf">"The Greek Debt Restructuring and Property Rights: A Greek Tragedy for Investors?"</a> <span class="cs1-format">(PDF)</span>. University of Liège)<span class="reference-accessdate">. Retrieved <span class="nowrap">3 July</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Greek+Debt+Restructuring+and+Property+Rights%3A+A+Greek+Tragedy+for+Investors%3F&rft.pub=University+of+Li%C3%A8ge%29&rft.date=2013-07-02&rft.aulast=Wautelet&rft.aufirst=Patrick+R.&rft_id=https%3A%2F%2Forbi.uliege.be%2Fbitstream%2F2268%2F160460%2F1%2FWautelet.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AHaircut+%28finance%29" class="Z3988"></span></span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Haircut_(finance)&action=edit&section=8" title="Edit section: External links"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a rel="nofollow" class="external text" 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href="/wiki/Fourth_market" title="Fourth market">Fourth market</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Types of <a href="/wiki/Stock" title="Stock">stocks</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Common_stock" title="Common stock">Common stock</a></li> <li><a href="/wiki/Golden_share" title="Golden share">Golden share</a></li> <li><a href="/wiki/Preferred_stock" title="Preferred stock">Preferred stock</a></li> <li><a href="/wiki/Restricted_stock" title="Restricted stock">Restricted stock</a></li> <li><a href="/wiki/Tracking_stock" title="Tracking stock">Tracking stock</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Share_capital" title="Share capital">Share capital</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Authorised_capital" title="Authorised capital">Authorised capital</a></li> <li><a href="/wiki/Issued_shares" title="Issued shares">Issued shares</a></li> <li><a href="/wiki/Shares_outstanding" title="Shares outstanding">Shares outstanding</a></li> <li><a href="/wiki/Treasury_stock" title="Treasury stock">Treasury stock</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Participants</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Broker" title="Broker">Broker</a> <ul><li><a href="/wiki/Floor_broker" title="Floor broker">Floor broker</a></li> <li><a href="/wiki/Inter-dealer_broker" title="Inter-dealer broker">Inter-dealer broker</a></li></ul></li> <li><a href="/wiki/Broker-dealer" title="Broker-dealer">Broker-dealer</a></li> <li><a href="/wiki/Market_maker" title="Market maker">Market maker</a></li> <li><a href="/wiki/Trader_(finance)" title="Trader (finance)">Trader</a> <ul><li><a href="/wiki/Floor_trader" title="Floor trader">Floor trader</a></li> <li><a href="/wiki/Proprietary_trading" title="Proprietary trading">Proprietary trader</a></li></ul></li> <li><a href="/wiki/Quantitative_analyst" class="mw-redirect" title="Quantitative analyst">Quantitative analyst</a></li> <li><a href="/wiki/Investor" title="Investor">Investor</a></li> <li><a href="/wiki/Hedge_(finance)" title="Hedge (finance)">Hedger</a></li> <li><a href="/wiki/Speculator" class="mw-redirect" title="Speculator">Speculator</a></li> <li><a href="/wiki/Arbitrage" title="Arbitrage">Arbitrager</a> <ul><li><a href="/wiki/Scalping_(trading)" title="Scalping (trading)">Scalper</a></li></ul></li> <li><a href="/wiki/Financial_regulation" title="Financial regulation">Regulator</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Trading venues</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Exchange_(organized_market)" title="Exchange (organized market)">Exchange</a> <ul><li><a href="/wiki/List_of_stock_exchanges" class="mw-redirect" title="List of stock exchanges">List of stock exchanges</a></li> <li><a href="/wiki/List_of_stock_exchange_trading_hours" class="mw-redirect" title="List of stock exchange trading hours">Trading hours</a></li></ul></li> <li><a href="/wiki/Over-the-counter_(finance)" title="Over-the-counter (finance)">Over-the-counter</a> (off-exchange)</li> <li><a href="/wiki/Alternative_trading_system" title="Alternative trading system">Alternative trading system</a> (ATS)</li> <li><a href="/wiki/Multilateral_trading_facility" title="Multilateral trading facility">Multilateral trading facility</a> (MTF)</li> <li><a href="/wiki/Electronic_communication_network" title="Electronic communication network">Electronic communication network</a> (ECN)</li> <li><a href="/wiki/Direct_market_access" title="Direct market access">Direct market access</a> (DMA)</li> <li><a href="/wiki/Straight-through_processing" title="Straight-through processing">Straight-through processing</a> (STP)</li> <li><a href="/wiki/Dark_pool" title="Dark pool">Dark pool</a> (private exchange)</li> <li><a href="/wiki/Crossing_network" title="Crossing network">Crossing network</a></li> <li><a href="/wiki/Foreign_exchange_aggregator" title="Foreign exchange aggregator">Liquidity aggregator</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Stock_valuation" title="Stock valuation">Stock valuation</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Alpha_(finance)" title="Alpha (finance)">Alpha</a></li> <li><a href="/wiki/Arbitrage_pricing_theory" title="Arbitrage pricing theory">Arbitrage pricing theory</a> (APT)</li> <li><a href="/wiki/Beta_(finance)" title="Beta (finance)">Beta</a></li> <li><a href="/wiki/Buffett_indicator" title="Buffett indicator">Buffett indicator</a> (Cap-to-GDP)</li> <li><a href="/wiki/Book_value" title="Book value">Book value</a> (BV)</li> <li><a href="/wiki/Capital_asset_pricing_model" title="Capital asset pricing model">Capital asset pricing model</a> (CAPM)</li> <li><a href="/wiki/Capital_market_line" title="Capital market line">Capital market line</a> (CML)</li> <li><a href="/wiki/Dividend_discount_model" title="Dividend discount model">Dividend discount model</a> (DDM)</li> <li><a href="/wiki/Dividend_yield" title="Dividend yield">Dividend yield</a></li> <li><a href="/wiki/Earnings_yield" title="Earnings yield">Earnings yield</a></li> <li><a href="/wiki/EV/EBITDA" class="mw-redirect" title="EV/EBITDA">EV/EBITDA</a></li> <li><a href="/wiki/Fed_model" title="Fed model">Fed model</a></li> <li><a href="/wiki/Net_asset_value" title="Net asset value">Net asset value</a> (NAV)</li> <li><a href="/wiki/Security_characteristic_line" title="Security characteristic line">Security characteristic line</a></li> <li><a href="/wiki/Security_market_line" title="Security market line">Security market line</a> (SML)</li> <li><a href="/wiki/T-model" title="T-model">T-model</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Trading theories<br /> and <a href="/wiki/Trading_strategy" title="Trading strategy">strategies</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Algorithmic_trading" title="Algorithmic trading">Algorithmic trading</a></li> <li><a href="/wiki/Buy_and_hold" title="Buy and hold">Buy and hold</a></li> <li><a href="/wiki/Contrarian_investing" title="Contrarian investing">Contrarian investing</a></li> <li><a href="/wiki/Dollar_cost_averaging" title="Dollar cost averaging">Dollar cost averaging</a></li> <li><a href="/wiki/Efficient-market_hypothesis" title="Efficient-market hypothesis">Efficient-market hypothesis</a> (EMH)</li> <li><a href="/wiki/Fundamental_analysis" title="Fundamental analysis">Fundamental analysis</a></li> <li><a href="/wiki/Growth_stock" title="Growth stock">Growth stock</a></li> <li><a href="/wiki/Market_timing" title="Market timing">Market timing</a></li> <li><a href="/wiki/Modern_portfolio_theory" title="Modern portfolio theory">Modern portfolio theory</a> (MPT)</li> <li><a href="/wiki/Momentum_investing" title="Momentum investing">Momentum investing</a></li> <li><a href="/wiki/Mosaic_theory_(investments)" title="Mosaic theory (investments)">Mosaic theory</a></li> <li><a href="/wiki/Pairs_trade" title="Pairs trade">Pairs trade</a></li> <li><a href="/wiki/Post-modern_portfolio_theory" title="Post-modern portfolio theory">Post-modern portfolio theory</a> (PMPT)</li> <li><a href="/wiki/Random_walk_hypothesis" title="Random walk hypothesis">Random walk hypothesis</a> (RMH)</li> <li><a href="/wiki/Sector_rotation" title="Sector rotation">Sector rotation</a></li> <li><a href="/wiki/Style_investing" title="Style investing">Style investing</a></li> <li><a href="/wiki/Swing_trading" title="Swing trading">Swing trading</a></li> <li><a href="/wiki/Technical_analysis" title="Technical analysis">Technical analysis</a></li> <li><a href="/wiki/Trend_following" title="Trend following">Trend following</a></li> <li><a href="/wiki/Value_averaging" title="Value averaging">Value averaging</a></li> <li><a href="/wiki/Value_investing" title="Value investing">Value investing</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Related terms</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Bid%E2%80%93ask_spread" title="Bid–ask spread">Bid–ask spread</a></li> <li><a href="/wiki/Block_trade" title="Block trade">Block trade</a></li> <li><a href="/wiki/Cross_listing" title="Cross listing">Cross listing</a></li> <li><a href="/wiki/Dividend" title="Dividend">Dividend</a></li> <li><a href="/wiki/Dual-listed_company" title="Dual-listed company">Dual-listed company</a></li> <li><a href="/wiki/DuPont_analysis" title="DuPont analysis">DuPont analysis</a></li> <li><a href="/wiki/Efficient_frontier" title="Efficient frontier">Efficient frontier</a></li> <li><a href="/wiki/Financial_law" title="Financial law">Financial law</a></li> <li><a href="/wiki/Flight-to-quality" title="Flight-to-quality">Flight-to-quality</a></li> <li><a href="/wiki/Government_bond" title="Government bond">Government bond</a></li> <li><a href="/wiki/Greenspan_put" title="Greenspan put">Greenspan put</a></li> <li><a class="mw-selflink selflink">Haircut</a></li> <li><a href="/wiki/Initial_public_offering" title="Initial public offering">Initial public offering</a> (IPO)</li> <li><a href="/wiki/Long_(finance)" title="Long (finance)">Long</a></li> <li><a href="/wiki/Mandatory_offer" title="Mandatory offer">Mandatory offer</a></li> <li><a href="/wiki/Margin_(finance)" title="Margin (finance)">Margin</a></li> <li><a href="/wiki/Market_anomaly" title="Market anomaly">Market anomaly</a></li> <li><a href="/wiki/Market_capitalization" title="Market capitalization">Market capitalization</a></li> <li><a href="/wiki/Market_depth" title="Market depth">Market depth</a></li> <li><a href="/wiki/Market_manipulation" title="Market manipulation">Market manipulation</a></li> <li><a href="/wiki/Market_trend" title="Market trend">Market trend</a></li> <li><a href="/wiki/Mean_reversion_(finance)" title="Mean reversion (finance)">Mean reversion</a></li> <li><a href="/wiki/Momentum_(finance)" title="Momentum (finance)">Momentum</a></li> <li><a href="/wiki/Open_outcry" title="Open outcry">Open outcry</a></li> <li><a href="/wiki/Order_book" title="Order book">Order book</a></li> <li><a href="/wiki/Position_(finance)" title="Position (finance)">Position</a></li> <li><a href="/wiki/Public_float" title="Public float">Public float</a></li> <li><a href="/wiki/Public_offering" title="Public offering">Public offering</a></li> <li><a href="/wiki/Rally_(stock_market)" title="Rally (stock market)">Rally</a></li> <li><a href="/wiki/Returns-based_style_analysis" title="Returns-based style analysis">Returns-based style analysis</a></li> <li><a href="/wiki/Reverse_stock_split" title="Reverse stock split">Reverse stock split</a></li> <li><a href="/wiki/Share_repurchase" title="Share repurchase">Share repurchase</a></li> <li><a href="/wiki/Short_(finance)" title="Short (finance)">Short selling</a></li> <li><a href="/wiki/Short_squeeze" title="Short squeeze">Short squeeze</a></li> <li><a href="/wiki/Slippage_(finance)" title="Slippage (finance)">Slippage</a></li> <li><a href="/wiki/Speculation" title="Speculation">Speculation</a></li> <li><a href="/wiki/Squeeze-out" title="Squeeze-out">Squeeze-out</a></li> <li><a href="/wiki/Stock_dilution" title="Stock dilution">Stock dilution</a></li> <li><a href="/wiki/Stock_exchange" title="Stock exchange">Stock exchange</a></li> <li><a href="/wiki/Stock_market_index" title="Stock market index">Stock market index</a></li> <li><a href="/wiki/Stock_split" title="Stock split">Stock split</a></li> <li><a href="/wiki/Stock_swap" title="Stock swap">Stock swap</a></li> <li><a href="/wiki/Trade_(financial_instrument)" class="mw-redirect" title="Trade (financial instrument)">Trade</a></li> <li><a href="/wiki/Tender_offer" title="Tender offer">Tender offer</a></li> <li><a href="/wiki/Uptick_rule" title="Uptick rule">Uptick rule</a></li> <li><a href="/wiki/Volatility_(finance)" title="Volatility (finance)">Volatility</a></li> <li><a href="/wiki/Voting_interest" title="Voting interest">Voting interest</a></li> <li><a href="/wiki/Yield_(finance)" title="Yield (finance)">Yield</a></li></ul> </div></td></tr></tbody></table></div>    </div><noscript><img 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