underhedged

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English[edit]

Etymology[edit]

under- +‎ hedged

Adjective[edit]

underhedged (comparative more underhedged, superlative most underhedged)

  1. (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.

Antonyms[edit]