Investments Jargon Buster
We've provided simple definitions for industry jargon. If you can't find the term you need in our Top 20 list, click on the first letter of the word or phrase from the alphabet below.
For additional help with explanations of money terms, you can use the FSA’s Money Made Clear jargon buster
Investments H terms:
- Hedge Fund
A type of investment portfolio under which the fund manager is authorised to utilise a number of higher-risk investment techniques, including using derivatives, short selling and borrowing funds to generate a higher return. However, not all hedge funds undertake high-risk investment strategies.
The practice of undertaking one investment activity in order to protect against loss in another. Financial instruments commonly used to 'hedge' against the risk of losses include types of derivatives such as futures, swaps and options.
- High Yield Credit/High Yield Bonds
These are fixed interest securities with a rating of BB or lower (Standard and Poors), or Ba or lower (Moody's). They are also referred to as Junk bonds.