Haircut (finance)

In finance, a haircut is the difference between the market value of an asset used as loan collateral and the amount of the loan. The amount of the haircut reflects the lender's perceived risk of loss from the asset falling in value or being sold in a fire sale. The lender will, however, still hold a lien for the entire value of the asset. In the event the collateral is sold to repay the loan, the lender will have a higher chance of being made whole.

Expressed as a percentage of the collateral's market value, the haircut is the complement of the Loan-to-value ratio (together they equal 100% of the value.)

For example, United States Treasury bills, which are seen as fairly safe, might have a haircut of 10%, while for stock options, which are seen as highly risky, the haircut might be as high as 30%. In other words, a $1000 treasury bill will be accepted as collateral for a $900 loan, while a $1000 stock option might only allow a $700 loan.

Lower haircuts allow for more leverage. Haircut plays an important role in many kinds of trades, such as repurchase agreements (referred to in debt-instrument finance as "repo" but not to be confused with the concept of repossession denoted by that term in consumer finance) and reverse repurchase agreements ("reverse repo" in debt-instrument finance).

Introduction

Introduction, The Introduction, Intro, or The Intro may refer to:

Intro (R&B group)

Intro is an American R&B trio from Brooklyn, New York City, New York. The trio consisted of members Jeff Sanders, Clinton "Buddy" Wike and lead singer/songwriter Kenny Greene. Intro released two albums (for Atlantic Records): 1993's Intro and their second album, 1995's New Life. The group had a string of US hits in the 1990s. The hits included the singles "Let Me Be The One", the Stevie Wonder cover "Ribbon in the Sky", "Funny How Time Flies" and their highest charting hit, "Come Inside".

Intro's Kenny Greene died from complications of AIDS in 2001. Intro recently emerged as a quintet consisting of Clinton "Buddy" Wike, Jeff Sanders, Ramon Adams and Eric Pruitt. Adams departed in 2014, with the group back down to its lineup as a trio. They are currently recording a new album to be released in 2015. The group released a new single in 2013 called "I Didn't Sleep With Her" and a new single "Lucky" in October 2014.

Discography

Albums

Singles

References

And Their Name Was Treason

And Their Name Was Treason is the debut studio album by American rock band A Day to Remember, released on May 10, 2005 through Indianola Records. It followed their self-released EP, which was produced the previous year. The album was the band's only release under Indianola; its success led the group sign to Victory Records. Several songs on the album were written during the band members' teenage years. Recorded in the producer's bedroom, the album contains audio excerpts from several films. The band toured in the United States to help promote the album. The album has since sold over 10,000 copies. A re-recorded version of the album, titled Old Record, was released in October 2008 by Victory. The band members later admitted that they were forced to do the re-recording at the request of label owner Tony Brummel. The reissue charted at number 16 on the Heatseekers Album Chart in the U.S.

Background

A Day to Remember formed when guitarist Tom Denney asked Jeremy McKinnon if he would like to join the band as a vocalist. The pair hung out with drummer Bobby Scruggs, who later joined the band. During this period, both Denney and Scruggs were already in a band; Denney was in 2 Days 2 Late, while McKinnon played in All for Nothing. The trio wrote a song which McKinnon said "was better than everything our other bands had come up with". Shortly afterwards the trio decided to form a band which was called End of An Era in its first week of existence. The name was inspired by a movie listing in a TV guide found in Denney's home. One day at rehearsal, a friend of Scruggs showed up with his girlfriend, who came up with the band's name A Day to Remember.