Dynamic hedging

Dynamic hedging

Dynamic hedging

A strategy that involves rebalancing hedge positions as market conditions change; a strategy that seeks to insure the value of a portfolio using a synthetic put option.

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Dynamic asset allocation

Dynamic asset allocation

Dynamic asset allocation

An asset allocation strategy in which the asset mix is mechanistically shifted in response to -changing market conditions, as in a portfolio insurance strategy, for example.

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Dutch auction

Dutch auction

Dutch auction

Auction in which the lowest price necessary to sell the entire offering becomes the price at which all securities offered are sold. This technique has been used in Treasury auctions.

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Due bill

Due bill

Due bill

An instrument evidencing the obligation of a seller to deliver securities sold to the buyer. Occasionally used in the bill market.

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Drop, the

Drop, the

Drop, the

With the dollar roll transaction the difference between the sale price of a mortgage-backed pass-through, and its re-purchase price on a future date at a predetermined price.

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