FRM Blogs
How does a Market Maker work? | Full Understanding
Who is a Market Maker and what does it mean to ‘Make the Market’?
Within a few taps you can place an order with your brokerage firm to...
How is Fed Funds Rate calculated?
What is Fed Funds Rate?
The Federal Reserve’s (also known as Fed) requirement is that banks have to maintain a cash reserve and these ...
How does Swaption works?
How does Swaption Works ?
What is Swaps?
Swap is an over-the-counter trading deal between two firms to swap cash reserves in the futu...
Jensen’s Alpha – The Portfolio Performance Indicator
What is Jensen’s Alpha?
Jensen’s alpha also known as Jensen’s Measure was developed by Michael Jensen in 1968. It is a measure which g...
What is Moral Hazard Risk?
Definition of Moral Hazard Risk :
Moral Hazard is a danger that insuring against risk will make the event one is trying to insure, ...
What is Merger Arbitrage Strategy
What is Merger Arbitrage?
Merger arbitrage, also known as risk arbitrage, is an event-driven strategy mainly undertaken by hedge fu...
How does CLS reduce Herstatt Risk?
How does CLS reduce Herstatt Risk?
What is Herstatt Risk?
Herstatt risk is the risk of loss in settlement of foreign exchange transac...
Direct Repo & Third Party Repo
What is Direct Repo:
Direct Repo also known as repurchase agreements take place to help facilitate short term borrowings in exchange...
What are Credit Risk Debt Funds?
Credit Risk Debt Funds
Credit risk funds are a type of debt funds that invests in low-credit rated debt securities. Credit risk debt f...
What is NOW and Super NOW?
What is the Negotiable Order of Withdrawal Account (NOW)?
A NOW account, also known as Negotiable Order of Withdrawal Account, is a...
