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If I have an traded asset like a bond with face value of 1 million, but currently trading at 0.9 million, can I simply say that the haircut, if I use this asset as a collateral for repo, is 1 - 0.9=0.1. Or is it more involved than that?

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    $\begingroup$ The haircut is not related to the nominal. A bond trading at $90 might have a haircut of 0% 3% or 10% etc related to the quality of its collateral and market volatility, this simply means how much more you need to post to cover the monetary liability. $\endgroup$ – Attack68 Apr 27 at 21:12

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