Structuring Hedge Funds
A hedge fund is a vehicle for pooling the capital of a group of investors, each with their own attributes and preferences, in order to invest jointly in a targeted…
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Investment Management: Operating a Hedge Fund
This article provides an overview of how to operate a hedge fund and the important role that hedge funds play in the field of investment management. Infrastructure Requirements for Hedge…
Credit Risk: Definition and Management
Understanding credit risk is important for developing a general understanding of derivatives markets and how they are affected by risk. What is Credit Risk? Credit risk is a significant element…
What is hedging: Managing Financial Price Risk
To answer the question “what is hedging?” in the general sense, we can imagine a company entering into a transaction whose sensitivity to movements in financial prices offsets the sensitivity…
Risk Assessment: Scenario Analysis and Value-at-Risk
The derivatives Greeks are tools derivatives end-users employ to describe and to characterize the various exposures to fluctuations in financial prices inherent in a particular position or portfolio of instruments.…
Risk Holes and Liquidity Risk: Definition and Examples
Professional investment managers use a variety of sophisticated tools to measure risk. Two important dimensions of risk are described as risk holes and liquidity risk. Risk Holes and Liquidity Risk:…
