Short selling is a trading strategy that involves selling securities that the trader does not own, with the intention of buying them back at a lower price in the future. The trader borrows the securities from someone else, typically a … Continue reading Short selling (shorting)
Proprietary trading and agency trading are two different types of trading that are carried out by financial institutions or individual traders. Proprietary trading, also known as “prop trading,” refers to trading activities that are undertaken using own capital, rather than … Continue reading Proprietary vs agency trading
Liability-driven investing (LDI) is an investment strategy that aims to align the investments of a pension fund or other institutional investor with the liabilities or obligations it is expected to meet. In other words, LDI seeks to match the assets … Continue reading What is LDI?
When we speak about the financial services we can frequently come across a term ‘custodian’. This typically refers to a custodian bank, which serves a very different purpose when compared to commercial or merchant banks. The main goal of a … Continue reading Who is a custodian?
Introduction ESG stands for Environmental, Social, and Governance. It refers to a set of standards that measure the sustainability and societal impact of an investment in a company or business. Investors and financial institutions use ESG criteria to evaluate the … Continue reading ESG in finance
Global Investment Performance Standards (GIPS) are a set of standardized ethical principles for measuring and reporting the performance of investment firms. These standards were developed by the CFA Institute, a global professional association for investment professionals, and are designed to … Continue reading What is GIPS?
All financial institutions are subject to various laws and regulations that are designed to protect consumers and ensure that they are treated fairly. If these laws or regulations are violated, an institution could potentially face fines or other penalties. This … Continue reading What is compliance?
We hear this term in the news a lot. The economic downturn supported by the de-globalization triggered by the Russia-Ukrainian war as well as the increase in energy costs caused this term to appear in the news on the daily … Continue reading What is Inflation?
Market updates This week’s market updates will focus on the bond markets and yield curves. Overall the equities markets have rebounded displaying the high level of confidence, but the yield curves and hikes tell us an opposite story with the … Continue reading Weekly Market Update – 01-07 August 2022
Introduction to yield curve The definition of a yield curve states that it is a line that plots interest rates of bonds that have an equal credit quality across differing maturity dates. The slope of the yield curve gives an … Continue reading What is a yield curve?
While the main blog is going to be focused on education, I would like to start new series with the weekly news having the largest impact of the world markets. I will start with the markets overview and then follow … Continue reading Weekly Market Update – 25-31 July 2022
The idea of putting all eggs in different baskets is inherently based on pure math and the way the risks are lowered non-linearly, while returns being the average return on the instruments. Continue reading Diversification and why having all eggs in one basket is riskier
When it comes to investing, majority of population directly think about returns and how much one can make by allocating their funds. However, the returns come hand in hand with another measure of investment performance – risk. While the returns are fairly easily observable, measuring risk can be more tricky and have multiple layers of how we can approach them. Continue reading Measuring Risk 101
In a world where investors are constantly looking for new ways to invest, structured products could be exactly what they are searching for. Whereas equities are usually tied to the performance of a company or index and bonds have specific rates at which they are paid out, structured products tend to have more flexibility in both their risk and return profiles. Continue reading What are Structured Products?
Generally, what comes to mind when we hear “financial funds” is money. While this is accurate, this term perfectly describes a “pool” of money. Usually, pooling money is a way to achieve a specific financial goal that is probably capital-intensive. … Continue reading What are Financial Funds?
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