Effective Duration
Effective Duration (Words <500)
The duration calculation for bonds that have embedded options is known as effective duration. It he...
Tag Archives: Bond
29
Dec
Basis Point Value
Basis Point Value
Basis points represent a unit employed to measure interest rates and other financial percentages. A basis point equa...
03
Dec
Equity vs Fixed Income
Equity vs Fixed Income
If a person wants to generate income or appreciation in the future he acquires an asset known as investment. An...
11
Nov
Bond Tranches
Bond Tranches
Tranche is a French word meaning slice or portion. They are found in mortgage-backed securities (MBS) or asset-backed sec...
14
Sep
Barbell Strategy
Barbell Strategy
Options are a conditional derivative instrument that allows the buyer of the contract to buy or sell a security at a c...
21
Aug
Capital structure
Capital structure
What is Capital Structure?
Capital structure is basically a combination of debt and equity which is used by the c...
08
Jul
Dollar Duration (DV01)
Dollar Duration (DV01)
What is DV01 (Dollar Duration)?
A bond analysis method that helps an investor ascertain the sensitivity of t...
02
Jul
Euroclear System
Euroclear System
Euroclear System is a clearinghouse that settles and clears securities trades executed on European exchanges. It is on...
21
May
Zero Coupon Bond Vs Regular Coupon Bond
Zero-Coupon Bond Vs Regular Coupon Bond
Bonds having similar characteristics to the Fixed Deposit in saving banks account. Bonds are le...
13
May
How Are Bonds Rated?
How Are Bonds Rated?
Bond-rating represents the creditworthiness of government or corporate bonds. The ratings are given by credit rati...
12