InvestorsHub Logo
Followers 29
Posts 3257
Boards Moderated 0
Alias Born 12/24/2017

Re: None

Friday, 04/26/2024 9:21:33 PM

Friday, April 26, 2024 9:21:33 PM

Post# of 107194
“4 more days, Pause”

“Understanding Collateral Haircut
A haircut refers to the lower-than-market value placed on an asset being used as collateral for a loan. The haircut is expressed as a percentage of the markdown between the two values. When they are used as collateral, securities are generally devalued, since a cushion is required by the lending parties in case the market value falls.”

https://www.investopedia.com/terms/h/haircut.asp


"Be fearful when others are greedy, and greedy when others are fearful."
_Warren Buffett