Finance & Corporate Jargon · Managing Director level

"Haircut"

"Haircut" means a reduction in the value or price of an asset, loan, or payment, typically used in financial contexts.

Say this instead: a markdown

How "Haircut" shows up at work

Finance people use this because "loss" sounds alarming and "haircut" sounds minor. The size of the haircut in question often suggests a very different kind of trim is underway.

Buzzword

The lenders agreed to take a haircut on the outstanding balance to close the deal.

Plain English

The lenders agreed to accept a markdown on the outstanding balance to close the deal.

Corporate Rank: Managing Director · Category: Finance & Corporate Jargon

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