Underhedged

adj

adj ·Rare ·Advanced level

Definitions

Adjective
  1. 1
    On a hedged a transaction, having too much cash flow committed to rated note debt coverage, leaving too little available for the income notes.

    "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."

Example

More examples

"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."

Etymology

From under- + hedged.

Related phrases

cash flow

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Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.