Underhedged
Definition, Meaning & Examples
Part of speech adjective
Quick meaning: Underhedged is an adjective meaning (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.
Meaning
(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.
Example Sentences
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.
Related Words
Related dictionary entries include hedged, hedgeward, heddled, hemlined, hypothecative, hazarded.
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Sources & Attribution
FreeDictionaryAPI.com / Wiktionary · Original source · CC BY-SA 4.0
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