Archives

Fundamentals: Economics

Negative interest rates are meant to stimulate the economy – but they’re a last resort

Central banks will move to negative interest rates when they’ve exhausted other tools to stimulate a sputtering economy. Such a shift isn’t without implications, but average investors aren’t likely to…

Investing: Behavioral

How to Protect Yourself Against Investor Securities Fraud

Securities fraud is alive and well – and will stay that way as long as people are desperate for higher returns. But there are plenty of avenues out there for investors interested in protecting themselves from scam artists.

November 14, 2016
4 mins Read

Fundamentals: Bonds

What is a Callable Bond?

Callable bonds give the issuer the chance to redeem bond issues early. In return, the buyer gets a bond with a higher coupon rate and likely a higher price upon…

November 7, 2016
2 mins Read

Fundamentals: Bonds

What is a Covered Bond?

Covered bonds are typically backed by pools of residential mortgages. They’ve become increasingly popular owing to their high level of safety and credit ratings. Covered bonds are a relatively new…

Fundamentals: Bonds

Fintech’s Reach Into Bond Markets Promises More Transparency and Efficiency

Financial technology reaches into many aspects of capital markets, including bond origination – an area that has long resisted change. But while a move toward more digital bond markets may take some getting used to, it promises to provide price transparency, efficiency and help inject liquidity into the world of fixed-income.

October 31, 2016
3 mins Read

Investing: Fixed Income

What is Yield Curve and What Does it Tell Us About The Economy?

The yield curve plots the yield spread between various maturities of bonds. Those spreads can provide an indication of where interest rates and inflation are heading – and also whether a recession is in the cards.