---
title: Stop believing in haircuts - at least the way you think about them
url: https://www.ml-quant.com/papers/ssrn/7618239/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-16
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7618239
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7618239
featured: 2026-10-16
citations: unknown
topic: Trading, Microstructure & Execution
---


# Stop believing in haircuts - at least the way you think about them

The study shows that dealer balance-sheet constraints, collateral convenience yields, and client outside options jointly determine repo haircuts, with leverage ratios reshaping market functioning and monetary policy transmission.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7618239
- Identifier: SSRN 7618239
- Released: 2026-10-16
- First featured: Quant Letter No. 135 (2026-10-16): https://www.ml-quant.com/issues/2026-10-16/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution
- Authors: Benedikt Ballensiefen, Jasper Knyphausen, Benoît Nguyen

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