underhedged
English
[edit]Etymology
[edit]Pronunciation
[edit]Adjective
[edit]underhedged (comparative more underhedged, superlative most underhedged)
- (finance) On a hedged a transaction, having too much cash flow committed to rated note debt coverage, leaving too little available for the income notes.
- 2008 May 7, Landon Thomas Jr., “Quarrel Erupts Between Bear’s Elder Statesmen”, in New York Times[1]:
- Instead, it was a collective failure of the governing five-man executive committee that over the years became so fixated on increasing the firm’s book value — and expecting the stock price to follow — that it lost sight of the concentrated, underhedged exposure to the home mortgage market that left Bear vulnerable.