REPO & FUNDING
Repo Haircut
Measures collateral value withheld relative to cash lent.
Formula
Haircut = 1 - Cash/Collateral value
Variables: Cash advanced; collateral market value
What it means
Measures collateral value withheld relative to cash lent.
Example
Cash of 98 against collateral worth 100 implies a 2% haircut.
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.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.