Investment Glossary · Quick read · No ads
Collateral Haircut
The short answer
A discount applied to collateral value to account for market risk, liquidity risk, or credit risk.
What is Collateral Haircut?
A discount applied to collateral value to account for market risk, liquidity risk, or credit risk.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
