Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- PORTFOLIO INSURANCE
Is a form of hedging equity products, although others include credit instruments as well. Sometimes, this process is called dynamic hedging because it requires quick adjustments in the hedge. Initially, futures were used at various stop points to serve as synthetic put options. However, rapid and abrupt price moves can cause serious imbalances in the hedging mix.Back