Fixed income securities, or bonds, are considered safer investments but yield lower returns. They are common among risk-averse investors, well-diversified portfolios, pension funds, and passive income generation portfolios. When investors evaluate bonds to add to their portfolios, they must consider three defining aspects: the bond issuer, the yield to maturity, and the coupon rate.
The counterparty definition applies to every transaction in finance. You may have heard the term before, but what does it mean, and why does it matter?
In this article we will provide the country risk definition and explain why a country risk assessment is necessary to lower avoidable losses.
Every financial transaction requires a buyer & a seller, which become the counterparty to each other. In centralized markets, there is the clearinghouse.
We will explain the cost-of-living index definition, cover the cost-of-living index formula, and briefly discuss why the cost-of-living index in statistics.
The cost of carry definition, or carrying charge, is the cost of holding a position and It impacts profitability.
A central bank or monetary authority is an organization that is in charge of a state's or structured monetary union's monetary system, policy, & commercial financial system.
The Chicago Board Options Exchange (CBOE) is the premier options exchange in the United States, with headquarters at 433 West Van Buren Street in Chicago.
CHAPS (Clearing House Automated Payment System) is a high-value, bank-to-bank system of payment that offers irreversible, no-risk settlement, & quick transactions.
A certificate of deposit (CD) is a type of time deposit given by banks that pays a higher interest rate in return for the consumer consenting to keep a lump-sum deposit unattended for a set amount of time.
Carried interest is a performance fee paid to a manager or partner for making an investment happen. It is the share of profits from the proceeds of an investment
The Chicago Board of Trade (CBOT) was founded as a commodities market. Farming commodities such as grain, corn, and soya were initially traded on the Chicago Board of Trade.
Insurance expenses, inventory costs, interest charges, and other expenditures are included in the carrying charge, also known as the cost of carry.
A cash-and-carry trade is an arbitrage approach that takes advantage of the mispriced underlying value and its derivative.
A cash settlement is a way of settling agreements in futures and options trading at the point of expiration.