Tag Archives: frmlevel1
American Depositary Receipts
AMERICAN DEPOSITARY RECEIPTS:
INTRODUCTION:
American Depositary Receipts (ADRs) are negotiable investment securities provided by a US...
Debt Securities vs Equity Securities
Debt Securities vs Equity Securities
Debt securities are financial assets that define the terms of a loan between an issuer (the borrow...
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...
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 LIBOR and how it is calculated?
What is LIBOR?
The London Interbank Offered Rate (LIBOR) is an interest rate at which banks lend to each other in the international in...
What is Liquidity Risk
What is Liquidity Risk?
In respect to finance, liquidity means that how comfortably the assets (bonds, shares, plant, property, equipme...
First to Default CDS – Explained with Example
What is First to Default CDS?
First to Default CDS is a variant of the credit default swap. Credit Protection cease to exist when the ...
Foreign Exchange Risk – Full Details
What is Foreign Exchange Risk?
Foreign exchange risk refers to the risk that an investment value will change due to change in two diff...
Treasury Bills Quotation – How T-bill is quoted in the market
Treasury Bills Quotation - How T-bill is quoted in the market
Treasury bills, or T-bills, are short-term debt instruments issued by th...