Term Structure of Interest Rates
The term structure of interest rates for bonds, or yield curve, provides insight into the future direction of interest rates. It also reflects expectations for monetary policy conditions. Term Structure…
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Mutual Fund Bible: Does Size Really Matter?
Editor’s Note: This article was written in 1998 by Thomas Box. The recent lackluster performance of Trimark’s Canadian equity funds has spawned yet another flurry of articles questioning the wisdom…
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.
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…
