Category Financial Markets & Insituitions

Top 3 Market Conditions To Sell Expensive Options For Premium

Posted In The Blog | 3 Trader Comments Selling expensive options is a great way to make consistent and steady premiums for monthly income. Here are our top 3 market conditions that we look for when selling options:Spike in the VIX Absolutely ranked number one on our list. Since part of an option’s value is derived in market volatility, […]

The Beginner’s Guide To Trading Using Technical Analysis

The Beginner’s Guide To Trading Using Technical Analysis Posted In The Blog | 4 Trader Comments I’ve written a lot of really good content on technical analysis over the past couple of years, and I figured it was time to put it all the best content into one place, so that anyone who was starting out trading would […]

Duration—What an Interest Rate Hike Could Do to Your Bond Portfolio

If you own bonds or have money in a bond fund, there is a number you should know. It is called duration. Although stated in years, duration is not simply a measure of time. Instead, duration signals how much the price of your bond investment is likely to fluctuate when there is an up or […]

A Good explanation of CDOs (Collateralized Debt Obligations)

By Kimberly Amadeo, About.com Guide Definition: CDOs, or Collateralized Debt Obligations, are sophisticated financial tools thatbanks use to repackage individual loans into a product that can be sold to investors on the secondary market. These packages consist of auto loans, credit card debt, mortgages or corporate debt. They are called collateralized because the promised repayment of the loans […]

Cost of Equity and Return on Equity

Definition of ‘Cost Of Equity’ In financial theory, the return that stockholders require for a company. The traditional formula for cost of equity (COE) is the dividend capitalization model: A firm’s cost of equity represents the compensation that the market demands in exchange for owning the asset and bearing the risk of ownership. Investopedia explains […]

What is P/E Ratio ?

Growth Stocks vs. Value Stocks

Growth Stocks vs. Value Stocks Investors are often confused about the differences between growth stocks and value stocks. The main way in which they differ is not in how they are bought and sold, nor is it how much ownership they represent in a company. Rather, the difference lies mainly in the way in which […]

Differences Between Warrants & Options

Differences Between Warrants & Options – Introduction Stock options and Stock warrants are two extremely popular derivative instruments that are traded in stock and derivative exchanges all over the world. Because stock options and warrants share the same leverage characteristics, they have been commonly assumed to be the same instrument called different names. Nothing is […]

The real difference between Private Equity, Hedge Funds and Family Office. Who should I target as a source of capital for my renewables project/company?

The real difference between Private Equity, Hedge Funds and Family Office. Who should I target as a source of capital for my renewables project/company? The real difference between these different capital sources is not much. Historically one could generalize that hedge funds are traders, while private equity funds are more likely to be long term […]

Option Pricing: Black-Scholes vs Binomial

PRIVATE EQUITY VS. HEDGE FUNDS

PRIVATE EQUITY VS. HEDGE FUNDS While there are no strict definitions of a private equity firm and a hedge fund, some distinct similarities and differences separate the two types of firms. Private equity firms and hedge funds are similar in that both invest from a leveraged pool of capital normally contributed by limited partners; both compensate the management […]

Advanced Bond Concepts: Duration

Advanced Bond Concepts: Duration Understanding what duration is, how it is used and what factors affect it will help you to determine a bond’s price volatility. Volatility is an important factor in determining your strategy for capitalizing on interest rate movements. Furthermore, duration will also help you to determine how you can protect your portfolio […]

Money from Nothing: How Private Banks Create Money and Ideas for Reform of the Monetary System by James Robertson — YES! Magazine

Money from Nothing Supplying money should be a public service, not a cash cow for banks. by James Robertson posted Jul 07, 2009 The way money is created and issued, who creates it and in what form—as debt or debt-free, in one currency or another—largely determines whether a financial system works fairly and efficiently or […]

Wikipedia contents: Economics/Financial markets/Banking/Corporate finance/Personal finance/Public finance

  Economics Economies by country General classifications Microeconomics Macroeconomics History of economic thought Methodology Heterodox approaches Technical methods Mathematical Econometrics Experimental National accounting Fields and subfields Behavioral Cultural Evolutionary Growth Development History International Economic systems Monetary and Financial economics Public and Welfare economics Health Education Welfare Population Labour Personnel Managerial Computational Business Information Game theory Industrial organization Law Agricultural […]

Fund Management: Pension pots, portfolios and the art of long-term investment

As a fund manager, you manage a portfolio as an investor.We don’t have to persuade people to do things; we do things ourselves. We are investors rather than advisors. Mark Burgess, Chief investment officer THREADNEEDLE

Credit Default Swaps (CDS) and Collateralized Debt Obligation (CDO)

Valuation of credit default swap (CDS)

SWAP agreement exemple

SWAP agreement exemple Company A, pays to a lender a variable interest rate (nominal $1M) every period (LIBOR+2%).  Ex: in period 1, if LIBORis 5%, Company A pays 7% or $70k to the lender in that period. In period 2, if Libor goes down to 4%, Company A pays 6% or $60k in interest. LIBOR: […]

Comparaison des ETF par rapport à leurs modes de réplication est-il juste ?

Comparaison  des ETF par rapport à leurs modes de réplication est-il juste ? Dans les années 2007-2008, suite à la crise du crédit les investisseurs se méfient de plus en plus des produits utilisant des dérivés. Les ETF synthétiques utilisant des swaps sont considérés comme les investissements risqués. Les ETF synthétique qui ont reconnu un succès […]

Exchange Traded Funds ?

What is a Closed-End Mutual Fund ?

What is an Open-Ended Mutual Fund ?

Buy write Fund ?

An Open-End Means to Hedge Volatility RiverNorth’s Eric Metz discusses his firm’s reasons to create an open-end buy-write strategy fund and how the portfolio is positioned to mitigate risk. http://www.morningstar.com/cover/videocenter.aspx?id=581438 Josh Charney: Hi, my name is Josh Charney. I’m a fund analyst here at Morningstar. And here with me today I have Eric Metz. He is […]