Half-life
The amount of time that must elapse until half the principal amount of a block of bonds has been retired ( via a sinking fund or other Process).

Handle
Refers to the dollar price of a bond without additional fractions. Quoting a bond only in fractions presumes that the "handle" is known by market participants.

Hedge Clause
A disclaimer that disavows legal claim of and responsibility for the accuracy of information obtained from outside sources.

Hedge Period
The time interval between the initial futures transaction (creating an open position) and the offsetting futures transactions.

Hedging
1. The temporary purchase or sale of a contract calling for future delivery of a specific security at an agreed upon price to offset a present or anticipated position in the cash market.

2. The technique of making offsetting commitments to minimize the impact of contrary adverse movements.

HFA
Housing Finance Authority

High Grade Bonds
A bond of superior merit upon which the principal and interest will be paid under most conceivable circumstances, as with U.S. Government obligations.

High-Powered Money
Refers to financial institutions' reserve balances on the books of the Fed. since each dollar of reserves supports several dollars of deposits. The total quantity of high-powered money can be precisely controlled by the Federal Reserve.

Hit
Sellers hit bids when they agree to sell at the bid price.

Honest-To-God Yield
A yield computed on a mortgage-related security based on an actual or an assumed prepayment rate on the underlying mortgages.

Hung Deal
A new issue of which a large portion remains unsold and in the hands of the underwriters.

Hypothecation
The pledging of customers' securities as collateral for loans to brokers and dealers.