Log in or sign up to get involved in the conversation. It's quick and easy.
edwardvielmetti 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.
Mar 10, 2008
Looking for tweets for haircut contagion.
‘haircut contagion’ has been looked up 439 times, added to 1 list, commented on 1 time, and is not a valid Scrabble word.