What is Credit Risk?
Credit Risk assesses the chances a loan or bond won’t be repaid on time. It also assigns various levels of risk to those odds. Credit risk refers to the possibility…
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What Is Inflation?
Inflation is the change in the level of prices and the corresponding change in purchasing power that results. Most of the time, people associate the “Consumer Price Index” or “CPI”…
What Is An Investment Manager?
The person managing your money is likely an investment manager, a highly-trained professional in the financial services industry. She manages investment portfolios that include all kinds of securities, including the…
Bond Payments
All bonds have different bond payment terms so it’s important to understand the various types of bond payments, frequencies, interest rates and maturities options for a bond contract. All bond…
A “Hot-Air” Approach to the Markets
Editor’s Note: This article makes reference to events up until 1998. How the housing collapse of early 1990s and Hot-Air ballooning can teach us about irrational exuberance. Surprising how history…
Understanding Macaulay Duration, Modified Duration and Convexity
Duration is a measure of the average (cash-weighted) term-to-maturity of a bond. In plain-terms – think of it as an approximation of how long it will take to recoup your…
