Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Haircut 
In lending, a Haircut generally means the difference between the value of a loan and the value of the collateral securing the loan. More generally it is a term used for a variety of spreads and margins.
Hedging
A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
High Yield Term Loan (1)
A high yield term loan is a debt product that functions much like mezzanine or subordinated debt, but can have a 1st priority security interest in certain assets like equipment or intangibles.
Hypothecate
To pledge property as security or collateral for a debt. Typically, neither the possession nor the title but only the right to sell an asset or property passes on to the creditor or lender (called a grantee).