haircut

play
noun hair·cut \ˈher-ˌkət\
Updated on: 26 Jul 2017

Definition of haircut

  1. 1 :  the act or process of cutting and shaping the hair

  2. 2 :  hairdo

haircutter

play \ˈher-ˌkə-tər\ noun

haircutting

play \ˈher-ˌkə-tiŋ\ noun

Examples of haircut in a Sentence

  1. The girls got haircuts yesterday.

  2. He just had a haircut.

  3. Do you like my haircut?

Recent Examples of haircut from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'haircut'. Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of haircut

1899


Financial Definition of HAIRCUT

haircut

What It Is

A haircut is a reduction in an asset's value.

How It Works

For example, let's say the Greek government borrowed about $483 billion from banks, investment funds and other groups. Now it can't pay it back. So if an investor owns a Greek bond with a face value of, say, $1,000, the Greek government is now agreeing to pay back only $300. This means the investor will take a $700 haircut.

Why It Matters

Why would an investor settle for this? Because $300 is more than $0.

In a haircut situation, the only thing lenders can do is get together with other lenders and try to renegotiate with the borrower. Everybody goes into a crummy situation like this knowing that the borrower is probably never going to repay 100% of the debt, so the new objective is to get the borrower to pay back as much as possible.

A haircut doesn't always mean that the lenders are just going to let the borrower off the hook, though. The lenders might cut the interest rate on the debt way back or push the repayment date way out into the future. In our example, Greece might agree to pay back your $1,000, but they might do it at 2% for the next 30 years instead of 5% for the next 10 years.


HAIRCUT Defined for English Language Learners

haircut

play
noun

Definition of haircut for English Language Learners

  • : the act or result of cutting and shaping someone's hair


HAIRCUT Defined for Kids

haircut

play
noun hair·cut \ˈher-ˌkət\

Definition of haircut for Students

  1. :  the act, process, or result of cutting the hair



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