haircut contagion love

haircut contagion

Definitions

Sorry, no definitions found.

Etymologies

Sorry, no etymologies found.

Examples

Sorry, no example sentences found.

Wordnik is becoming a not-for-profit! Read our announcement here.

Comments

Log in or sign up to get involved in the conversation. It's quick and easy.


  • A fall in value in assets in a hedge fund provokes a margin call, forcing the fund to sell assets to bring leverage back to its initial level. However, the lender now imposes a higher margin, or "haircut", as the assets are now riskier. This in turn forces further borrowing and further sales.

    March 10, 2008