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REPO & FUNDING

Collateral Value After Haircut

Estimates cash that can be raised against collateral after applying a haircut.

Formula

Cash capacity = Collateral value × (1-Haircut)

Variables: Collateral value; haircut

What it means

Estimates cash that can be raised against collateral after applying a haircut.

Example

100m collateral with a 3% haircut supports roughly 97m cash.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.