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Repo Market & Collateral Haircut Simulator

Compare unsecured overnight borrowing against a collateralized repo transaction: raise a bank's cash need and collateral holdings, then drag market stress up and watch the lender's haircut climb and the cash actually raisable via repo shrink.

Economics & Social Systems3DModerate60 FPS

A bank with an overnight cash shortfall can borrow unsecured at a flat, higher rate, or raise cash through a repo — selling collateral to a lender overnight and buying it back the next day at a slightly higher price. This simulator visualizes the collateral stack as a 3D column: a green cash-raisable segment sits below a red haircut segment that the lender withholds as a safety margin. Move the market-stress slider and watch the haircut segment grow even though the bank's own collateral holdings never change, shrinking the cash actually raisable and, past a point, leaving the overnight need only partially covered by repo alone.

⚙ Under the hood

Compare unsecured overnight borrowing against a collateralized repo transaction: set a bank's cash need and collateral holdings, then raise market stress and watch the lender's haircut climb, shrinking the cash actually raisable via repo even though the collateral's quantity and the borrower's credit never change.

economicsmoney marketsreporepurchase agreementcollateralhaircutliquiditybankinginterest ratesmarket stress

3D · Three.js / WebGL renderer · 60 FPS target · runs fully client-side, no install