What is Convexity?
Convexity is an important tool used by investment professionals to show the impact that changes in yield have on the duration of a bond. It’s an especially important consideration during times of volatility on markets.
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Quantitative management explained.
Quantitative management uses computers to observe historical relationships and incorporate them to create models for stock selection. The obvious benefit is the simplicity of using a model once it is established.
Exotic Swaps
There is greater competition in the global derivatives market and increased demand for tools to help investors tailor their risk profiles. And this means financial engineers are coming up with…
Measuring Risk: Value-at-Risk
In a previous article, we talked about the derivatives “greeks“, tools derivatives end-users employ to describe and to characterize the various exposures to fluctuations in financial prices inherent in a…
Market Timing Strategies: Buy Low, Sell High
Timing your investment decision to buy low and sell high is much harder than it sounds. Market timing may sound easy and straightforward. It can simply look like a bunch…
What Is A Bond Covenant?
Bond covenants are utilized to restrict the borrowing firm from making decisions which will deteriorate its financial health from the time of borrowing. A covenant is a pledge or undertaking…
