I would appreciate if you can help me with the following
It turns out that neither of your guesses is
I must confess I never heard this expression
before. But, using my trusty Google, I learned that:
1) The terminolgy comes from the mortgage hedging market - something that sounds very risky to me.I am not familiar with trading interest rate products and I hope this explanation makes sense to you. If not, good luck Googling!