Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Hypothecation means offering an asset as collateral, or as backing for a loan.If you default on the loan, the lender can take the asset to recoup their money. Common uses for hypothecation include ...

Defined broadly, hypothecation refers to the practice of pledging an asset as collateral for a loan while still retaining ownership, as is commonly done to obtain a mortgage on a house. Here is an ...

Anyone who has taken out an auto loan or mortgage has likely entered into a hypothecation agreement to secure the loan. Hypothecation is common with secured loans. In the case of getting a mortgage on ...

Hypothecation refers to the process of using an asset as collateral for a loan. With hypothecation, you agree to let that asset be used to secure, or back the loan. But it only provides backing: You ...

If ever there was a word that you’d expect to find in a Harry Potter novel, it’s re-hypothecation. This a classic example of financial people inventing impenetrable terminology to make their business ...