Tag Archives: frm
Capital Allocation and Capital Market Line
Capital Allocation and Capital Market Line
Capital Allocation Line (CAL):
Asset allocation is the allocation of funds across different...
Fixed Income Arbitrage
Fixed Income Arbitrage
What is Arbitrage?
Arbitrage happens when an investor buys and sells an asset at the same time but in different...
Bilateral and Multilateral Netting
Bilateral and Multilateral Netting
Netting or “Intercompany Netting” is the process of reducing the risk of financial contracts by comb...
The Eurodollar Futures Markets
The Eurodollar Futures Markets
After World War II, several countries started to accumulate US dollars. Such countries opted not to trad...
What is Stack & Roll Hedge?
What is Stack & Roll Hedge?
Hedging is a risk management technique used to reduce investment risks by taking the opposite position ...
What is Treynor’s Ratio? What are its uses?
What is Treynor's Ratio? What are its uses?
Definition:
Treynor Ratio is also called reward-to-volatility ratio measures and adjusts f...
What is Liquidity Premium Theory
Liquidity Premium Theory
Liquidity premium theory is a concept widely used in bonds. To put it simply, it signifies the existence of r...
Hedge Fund Strategies
HEDGE FUND STRATEGIES
INTRODUCTION
Hedge Fund form an important subset of alternative investments. Investment in hedge funds would res...
Stock Split and Stock Consolidation
Stock Split and Stock Consolidation
What is a Stock Split?
A stock split is a process of dividing the stock into multiple shares to bo...
What is Total Return Swap?
Total Return Swap
A Total Return Swap (TRS) is a swap agreement in which one party makes payments based on a set rate either fixed or v...