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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The agent promised, on behalf of its clients Glenda and Gayle Watson, to plant two lines of additional hedge to help minimise the noise.
"By further diversifying our global manufacturing, we also believe it provides an additional hedge against uncertainty in a lingering or future trade war with China."
Actually our political masters might end up profiting due to rupee devaluation as in continuous inflationary environment the assets may outperform the devaluation incurred by the rupee that is, if an additional hedge of foreign currencies and foreign investments at the disposal of our legislators is not even accounted for.
WPX will retain more than $110 million in additional hedge gains, which will be realized throughout the year.
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.
"In addition to higher yields, some alternative investments can provide an additional hedge to insurers against low interest rates, due to their negative correlation with traditional investments," Deloitte says.
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.
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."
The Nationwide Inflation-Protected Securities Fund provides an additional hedge against future inflation without requiring investors to take on additional credit risk.
Should attractive hedges become available in the market at an acceptable cost, we will enter into additional hedges in mitigation against these financial risks.
The Partnership has additional hedges covering a portion of its production in 2020.
This was a result of the hedges we had to purchase during the first few weeks of the year, additional hedges we used to insure against adverse weather in ERCOT this summer, and increases in capacity costs in New England.
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