Additional hedge

Additional hedge

A protection against fallout risk in the mortgage pipeline.

Additional Hedge

A way for a mortgage lender to protect itself from the risk that a potential borrower will reject a loan after the terms are set but before the deal is finalized. Such a rejection could result in a loss for the lender, particularly if it has already made arrangements to repackage and sell the mortgage to a third party. An additional hedge protects against this. See also: Fallout Risk.
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Its diverse business model (in terms of geography and real estate segments, with the additional hedge of construction materials production) largely offsets the common perception that developers are a bad bet in uncertain times.
Energen Corporation (NYSE: EGN) announced today that it has sold additional hedge contracts applicable to the 2008 production of its oil and gas subsidiary, Energen Resources Corporation (ERC).
Cabot Oil & Gas Corporation today announced that the Company has initiated an additional hedge position covering approximately 20% of its anticipated natural gas production for the period January through December 2003.
Some additional hedge benefit comes from 600mw of pumped storage, as well as the inverse relationship between water flows and power prices; during periods of low water flows power prices increase as more expensive generation is dispatched in the place of hydro.
We will continue to evaluate the merits of entering into additional hedge positions for both 2003 and 2004 at levels consistent with our existing positions.
Subsequent to quarter-end, the company entered into additional hedge contracts covering 620 MMBtu for the production months of October 2008 through October 2009.
The following table represents the additional hedge positions entered into by APL since the Partnership reported fourth quarter 2009 earnings on February 23, 2010:
In fact, some would argue that actually borrowing money at fixed rates is an additional hedge, which is currently an option for performing properties through Fannie Mae, Freddie Mac and FHA.
In addition, we have taken advantage of commodity price increases associated with Isaac to layer-in an additional hedge of 300 BOPD at $110 per barrel for the October thru December 2012 time period and remain disciplined and active in our layered hedging strategy.
As the dissent put it, if Bentley paid rent on time during the first three years of the lease, Madison would have a substantial "degree of security" that Bentley could be "trusted to perform during the ensuing seven years," but conversely, the failure of Bentley to timely pay rent would "increase [Madison's] risk and lead it to seek the additional hedge of a continuing guaranty from the Millers.
NEW YORK -- Citi has been awarded an expanded mandate from Kayne Anderson Capital Advisors ("Kayne Anderson") to provide administration services for five additional hedge funds.
It is still possible for investors to register for the live June 22 event and for additional hedge fund managers to join the lineup of presenters.
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