Haircut definition

Haircut means the weighted average margin requirement, or the percentage amount by which the collateral value must exceed the loan amount. Among other things, it is a measure of our unsecured credit risk to our lenders.

Haircut means in respect of Eligible Securities, a discount to market value as [agreed between the Parties, or in the instance of a transaction between a DEALER and a CUSTOMER, a haircut stipulated in good faith by the DEALER;

Haircut means the additional percentage of an asset that is held as collateral to protect the lending parties if the market value of the collateral falls

Examples of Haircut in a sentence

• A bank may apply either the Simple Approach or the Collateral Haircut Approach to repo- style transactions; however, the bank must use the same approach for similar exposures or transactions.

• Haircut/ margins will be decided either by the clearing house or may be bilaterally agreed upon, in terms of the documentation governing repo transactions, subject to the following stipulations: Listed corporate bonds and debentures shall carry a minimum haircut of 2% of market value.

• For repo-style transactions to which the bank applies the Collateral Haircut Approach to recognize the risk-mitigating effects of qualifying financial collateral, as outlined in §.37 of the regulatory capital rules, the exposure amount to be reported in column A for a repo-style transaction or a single-product netting set of such transactions is determined by using the exposure amount equation in §.37(c) of the regulatory capital rules.

• No duty of care towards investors is implied or accepted by SG Issuer, the Guarantor, the Collateral Agent or the Collateral Monitoring Agent in relation to the level(s) of Haircut to be applied to the Collateral Assets in a particular Collateral Pool.

• Notwithstanding the foregoing but subject to Sections 5.3-1 and 5.3-2, on each date on which any Principal Receipt is received, the principal balance of the applicable Loan shall be reduced by an amount equal to the product of (x) the difference between (A) 100% and (B) the Haircut Percentage with respect to the applicable Item of Collateral (as of the time the applicable Loan was made) multiplied by (y) the amount of such Principal Receipt.

More Definitions of Haircut

Haircut. With respect to a Mortgage Loan and as shall be detailed in the related Transaction Request, the excess of (a) the amount required to be paid to the Approved Payee over (b) the related Purchase Price.

Haircut means a percentage by which the market value of a Collateral Asset is discounted to mitigate possible depreciation in the value of the relevant Collateral Asset in the period between the last valuation of such Collateral Asset and the realisation of such Collateral Asset.

Haircut means a percentage reduction in the value of collateral corresponding to the difference between the market value of a Security (as determined by SIX x-clear) and its deemed collateral value.

Haircut means the reduction of losses for loans originated by certain Select Third Party Originators in the settlement allocation formula pursuant to Section 3.05 of the Settlement Agreement, as described in Paragraph 87 of the Expert Report of Daniel R. Fischel dated July 17, 2014.

Haircut means, with respect to each Transaction, if the Purchase Price is less than par, an amount equal to the difference between par and the Purchase Price, which shall be considered a “settlement payment” as defined in Bankruptcy Code Section 741(8).

Haircut means, with respect to any Transaction, a percentage that is to be applied to the Market Value of Purchased Securities in order to determine the corresponding Purchase Price, in accordance with a Table of Haircuts to be published by the Central Bank of The Bahamas in official communication from time to time.

Haircut means the over-collateralization amount required by a lender in connection with a collateralized borrowing.