Hybrid security
Term used to describe a complex security consisting of virtually any combination of two or more risk management building blocks bond or note, swap, forward or future, or option. A hybrid listed on a stock exchange is generally one that pays a fixed return similar to a bond while containing the option of being converted […]
Hurdle rate
The expected rate of return on a potential investment that an investment manager demands before committing his money. It is an arrangement that caps the downside risk for investors.
HedgingÂ
Taking steps to protect against, or at least reduce, a risk; a form of insurance. The term is common in futures and foreign exchange markets where traders use facilities available to protect themselves against future price or exchange rate variations.