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 ...

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 ...