haircut

Definition

In lending, the difference between the value of a loan and the value of the collateral securing that loan. Or more generally, a term used for any of a wide variety of spreads and margins.

Use haircut in a sentence

The haircut was insignificant but still existed so we felt the creditor was doing a favor or exercising good will.

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I wanted to get a haircut before I met her because it was important to look my best when I first met her in the airport.

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When he looked at the spreadsheet, he saw that the haircut was unbelievable in his margin and that he was surprised that the bank had taken on such a suspect investment.

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