Day 1,366: haircut, collateral

Whereas it used to impose a haircut on the value of the collateral, it will now offer loans up to the bonds’ face value.

Artwork of the day 
Collateral
Hans Haacke
Style: Conceptual Art
Genre: installation

Word of the day 
haircut: a reduction in an amount of money, such as the price of a share or bond
valuable property owned by someone who wants to borrow collateral: money, that they agree will become the property of the company or personwho lends the money if the debt is not paidback:

Quote of the day
“Sometimes we are just the collateral damage in someone else's war against themselves.”
― Lauren Eden