Trend Analysis and Regression
Trend Analysis and Regression
Trend analysis can develop a sense of the volatility of a time series by looking at how the historical data varies around the trend line, although trend analysis provides no summary measure of volatility. Trend-fitting calculations are simple, and most spreadsheets automate the process of trend analysis. Regression analysis is a way to describe the relationship between two or more
More DetailsEnquire NowTrend analysis can develop a sense of the volatility of a time series by looking at how the historical data varies around the trend...
Trend Analysis and Regression
Trend analysis can develop a sense of the volatility of a time series by looking at how the historical data varies around the trend line, although trend analysis provides no summary measure of volatility. Trend-fitting calculations are simple, and most spreadsheets automate the process of trend analysis. Regression analysis is a way to describe the relationship between two or more
More DetailsEnquire NowTrend Analysis and Regression
Trend analysis can develop a sense of the volatility of a time series by looking at how the historical data varies around the trend line, although trend analysis provides no summary measure of volatility. Trend-fitting calculations are simple, and most spreadsheets automate the process of trend analysis. Regression analysis is a way to describe the relationship between two or more
More DetailsEnquire Now
Basic Statistical and Quantitative Methods
Basic Statistical and Quantitative Methods
The use of quantitative data is at the heart of finance. There are several core evaluative techniques used to interpret quantitative data, so that financial decisions are based on a reasonable forecast of the future. Indeed, all financial decisions contain some implicit forecast. Every decision made by a banker or bank customer is made under conditions of uncertainty. Uncertainty arises
More DetailsEnquire NowThe use of quantitative data is at the heart of finance. There are several core evaluative techniques used to interpret quantitative data, so that...
Basic Statistical and Quantitative Methods
The use of quantitative data is at the heart of finance. There are several core evaluative techniques used to interpret quantitative data, so that financial decisions are based on a reasonable forecast of the future. Indeed, all financial decisions contain some implicit forecast. Every decision made by a banker or bank customer is made under conditions of uncertainty. Uncertainty arises
More DetailsEnquire NowBasic Statistical and Quantitative Methods
The use of quantitative data is at the heart of finance. There are several core evaluative techniques used to interpret quantitative data, so that financial decisions are based on a reasonable forecast of the future. Indeed, all financial decisions contain some implicit forecast. Every decision made by a banker or bank customer is made under conditions of uncertainty. Uncertainty arises
More DetailsEnquire Now
Uncertain Cash Flow Combinations
Uncertain Cash Flow Combinations
Measures of association are important because most risk analysis involves more than a single series of prices, rates, or cash flows, and financial managers must analyze the risk of combinations of securities. Association between assets affects the overall level of risk in the portfolio. Hedging, one of the primary means of reducing risk, depends on determining whether there is positive
More DetailsEnquire NowMeasures of association are important because most risk analysis involves more than a single series of prices, rates, or cash flows, and financial managers...
Uncertain Cash Flow Combinations
Measures of association are important because most risk analysis involves more than a single series of prices, rates, or cash flows, and financial managers must analyze the risk of combinations of securities. Association between assets affects the overall level of risk in the portfolio. Hedging, one of the primary means of reducing risk, depends on determining whether there is positive
More DetailsEnquire NowUncertain Cash Flow Combinations
Measures of association are important because most risk analysis involves more than a single series of prices, rates, or cash flows, and financial managers must analyze the risk of combinations of securities. Association between assets affects the overall level of risk in the portfolio. Hedging, one of the primary means of reducing risk, depends on determining whether there is positive
More DetailsEnquire Now
Duration and Convexity
Duration and Convexity
Interest rate risk is taken seriously by bond investors. Investors want to be able to compare the risk of holding different bonds, since bonds have varying sensitivity to changes in interest rates. Duration and convexity are tools that enable the portfolio manager and individual investor to identify the risk in specific bonds. This not only lets them choose the right
More DetailsEnquire NowInterest rate risk is taken seriously by bond investors. Investors want to be able to compare the risk of holding different bonds, since bonds...
Duration and Convexity
Interest rate risk is taken seriously by bond investors. Investors want to be able to compare the risk of holding different bonds, since bonds have varying sensitivity to changes in interest rates. Duration and convexity are tools that enable the portfolio manager and individual investor to identify the risk in specific bonds. This not only lets them choose the right
More DetailsEnquire NowDuration and Convexity
Interest rate risk is taken seriously by bond investors. Investors want to be able to compare the risk of holding different bonds, since bonds have varying sensitivity to changes in interest rates. Duration and convexity are tools that enable the portfolio manager and individual investor to identify the risk in specific bonds. This not only lets them choose the right
More DetailsEnquire Now
Duration Properties
Duration Properties
In simple terms, duration or, more specifically, modified duration (which will be defined later) is a measurement of the price sensitivity of a financial instrument (more specifically, any series of cash flows) to changes in interest rates. That is, modified duration is a means to determine, with a high degree of accuracy, how much the present value (or price) of
More DetailsEnquire NowIn simple terms, duration or, more specifically, modified duration (which will be defined later) is a measurement of the price sensitivity of a financial...
Duration Properties
In simple terms, duration or, more specifically, modified duration (which will be defined later) is a measurement of the price sensitivity of a financial instrument (more specifically, any series of cash flows) to changes in interest rates. That is, modified duration is a means to determine, with a high degree of accuracy, how much the present value (or price) of
More DetailsEnquire NowDuration Properties
In simple terms, duration or, more specifically, modified duration (which will be defined later) is a measurement of the price sensitivity of a financial instrument (more specifically, any series of cash flows) to changes in interest rates. That is, modified duration is a means to determine, with a high degree of accuracy, how much the present value (or price) of
More DetailsEnquire Now
Quantitative and Fixed Income Analysis
Quantitative and Fixed Income Analysis
The calculation and interpretation of prices, yields, and volatility are critical to risk managers. The key calculations needed to pass the FRM exam are: time value of money (using both discrete and continuous compounding); bond prices and yields; annuities; duration and convexity; correlation; slope of a line (univariate regression); and joint probability and the binomial distribution. In addition, an understanding
More DetailsEnquire NowThe calculation and interpretation of prices, yields, and volatility are critical to risk managers. The key calculations needed to pass the FRM exam are:...
Quantitative and Fixed Income Analysis
The calculation and interpretation of prices, yields, and volatility are critical to risk managers. The key calculations needed to pass the FRM exam are: time value of money (using both discrete and continuous compounding); bond prices and yields; annuities; duration and convexity; correlation; slope of a line (univariate regression); and joint probability and the binomial distribution. In addition, an understanding
More DetailsEnquire NowQuantitative and Fixed Income Analysis
The calculation and interpretation of prices, yields, and volatility are critical to risk managers. The key calculations needed to pass the FRM exam are: time value of money (using both discrete and continuous compounding); bond prices and yields; annuities; duration and convexity; correlation; slope of a line (univariate regression); and joint probability and the binomial distribution. In addition, an understanding
More DetailsEnquire Now
Credit Spreads, Correlation and CDS Indexes
Credit Spreads, Correlation and CDS Indexes
Credit derivatives pricing is based on the credit or risk spread over a floating rate benchmark (e.g., LIBOR or EURIBOR) at which a particular entity's debt will trade. This spread has historically been different for bonds and loans, but the development of the credit derivatives market has caused these spreads to narrow - a logical expectation, as both spreads reflect
More DetailsEnquire NowCredit derivatives pricing is based on the credit or risk spread over a floating rate benchmark (e.g., LIBOR or EURIBOR) at which a particular...
Credit Spreads, Correlation and CDS Indexes
Credit derivatives pricing is based on the credit or risk spread over a floating rate benchmark (e.g., LIBOR or EURIBOR) at which a particular entity's debt will trade. This spread has historically been different for bonds and loans, but the development of the credit derivatives market has caused these spreads to narrow - a logical expectation, as both spreads reflect
More DetailsEnquire NowCredit Spreads, Correlation and CDS Indexes
Credit derivatives pricing is based on the credit or risk spread over a floating rate benchmark (e.g., LIBOR or EURIBOR) at which a particular entity's debt will trade. This spread has historically been different for bonds and loans, but the development of the credit derivatives market has caused these spreads to narrow - a logical expectation, as both spreads reflect
More DetailsEnquire Now
Correlation and Causality
Correlation and Causality
Measures of association are important, because most risk analysis involves more than a single series of prices, rates, or cash flows. Financial managers must analyze the risk of combinations of securities. A portfolio manager may have hundreds of different stocks, bonds, or loans in a portfolio and wants to measure and minimize the risk of the entire portfolio. A corporate
More DetailsEnquire NowMeasures of association are important, because most risk analysis involves more than a single series of prices, rates, or cash flows. Financial managers must...
Correlation and Causality
Measures of association are important, because most risk analysis involves more than a single series of prices, rates, or cash flows. Financial managers must analyze the risk of combinations of securities. A portfolio manager may have hundreds of different stocks, bonds, or loans in a portfolio and wants to measure and minimize the risk of the entire portfolio. A corporate
More DetailsEnquire NowCorrelation and Causality
Measures of association are important, because most risk analysis involves more than a single series of prices, rates, or cash flows. Financial managers must analyze the risk of combinations of securities. A portfolio manager may have hundreds of different stocks, bonds, or loans in a portfolio and wants to measure and minimize the risk of the entire portfolio. A corporate
More DetailsEnquire Now
Net Present Value and Internal Rate of Return
Net Present Value and Internal Rate of Return
When choosing between investments with unequal cash flows generated over equal time periods, the most common calculations are net present value and internal rate of return. NPV is the sum of all the present values of the cash flows for a given investment. Internal rate of return is the discount rate that will produce a net present value of zero
More DetailsEnquire NowWhen choosing between investments with unequal cash flows generated over equal time periods, the most common calculations are net present value and internal rate...
Net Present Value and Internal Rate of Return
When choosing between investments with unequal cash flows generated over equal time periods, the most common calculations are net present value and internal rate of return. NPV is the sum of all the present values of the cash flows for a given investment. Internal rate of return is the discount rate that will produce a net present value of zero
More DetailsEnquire NowNet Present Value and Internal Rate of Return
When choosing between investments with unequal cash flows generated over equal time periods, the most common calculations are net present value and internal rate of return. NPV is the sum of all the present values of the cash flows for a given investment. Internal rate of return is the discount rate that will produce a net present value of zero
More DetailsEnquire Now
Compound Interest
Compound Interest
The frequency of compounding is one of the key differences between quoting conventions in different markets. Annual returns are expressed as an annual nominal interest rate, also called the quoted interest rate, which is the annual rate before compounding. A periodic rate is the nominal rate divided into periods: daily, monthly, quarterly, or semi-annually. If quoted instruments do not have
More DetailsEnquire NowThe frequency of compounding is one of the key differences between quoting conventions in different markets. Annual returns are expressed as an annual nominal...
Compound Interest
The frequency of compounding is one of the key differences between quoting conventions in different markets. Annual returns are expressed as an annual nominal interest rate, also called the quoted interest rate, which is the annual rate before compounding. A periodic rate is the nominal rate divided into periods: daily, monthly, quarterly, or semi-annually. If quoted instruments do not have
More DetailsEnquire NowCompound Interest
The frequency of compounding is one of the key differences between quoting conventions in different markets. Annual returns are expressed as an annual nominal interest rate, also called the quoted interest rate, which is the annual rate before compounding. A periodic rate is the nominal rate divided into periods: daily, monthly, quarterly, or semi-annually. If quoted instruments do not have
More DetailsEnquire Now
Calculating Prices and Yields
Calculating Prices and Yields
Calculating the yields on different financial instruments is an essential skill for every banker. A debt instrument is priced by using its yield to maturity to discount its cash flows, and each type of instrument contains different cash flow structures. Several yield calculations apply to long-term, interest-bearing instruments, including the coupon rate, current yield, yield-to-maturity, bond equivalent yield, and ISMA
More DetailsEnquire NowCalculating the yields on different financial instruments is an essential skill for every banker. A debt instrument is priced by using its yield to...
Calculating Prices and Yields
Calculating the yields on different financial instruments is an essential skill for every banker. A debt instrument is priced by using its yield to maturity to discount its cash flows, and each type of instrument contains different cash flow structures. Several yield calculations apply to long-term, interest-bearing instruments, including the coupon rate, current yield, yield-to-maturity, bond equivalent yield, and ISMA
More DetailsEnquire NowCalculating Prices and Yields
Calculating the yields on different financial instruments is an essential skill for every banker. A debt instrument is priced by using its yield to maturity to discount its cash flows, and each type of instrument contains different cash flow structures. Several yield calculations apply to long-term, interest-bearing instruments, including the coupon rate, current yield, yield-to-maturity, bond equivalent yield, and ISMA
More DetailsEnquire Now
Valuing Bonds Using Option-Adjusted Spreads
Valuing Bonds Using Option-Adjusted Spreads
Option-adjusted spread (OAS) methodology addresses a major difficulty in valuing bonds with embedded options: the fact that the bond's cash flows change when the options are exercised. By explicitly incorporating an estimate of interest rate volatility into the bond's value, OAS methodology produces better valuations and more informed decisions by fund managers, traders, and issuers. The unit covers the development,
More DetailsEnquire NowOption-adjusted spread (OAS) methodology addresses a major difficulty in valuing bonds with embedded options: the fact that the bond’s cash flows change when the...
Valuing Bonds Using Option-Adjusted Spreads
Option-adjusted spread (OAS) methodology addresses a major difficulty in valuing bonds with embedded options: the fact that the bond's cash flows change when the options are exercised. By explicitly incorporating an estimate of interest rate volatility into the bond's value, OAS methodology produces better valuations and more informed decisions by fund managers, traders, and issuers. The unit covers the development,
More DetailsEnquire NowValuing Bonds Using Option-Adjusted Spreads
Option-adjusted spread (OAS) methodology addresses a major difficulty in valuing bonds with embedded options: the fact that the bond's cash flows change when the options are exercised. By explicitly incorporating an estimate of interest rate volatility into the bond's value, OAS methodology produces better valuations and more informed decisions by fund managers, traders, and issuers. The unit covers the development,
More DetailsEnquire NowTrend Analysis and Regression
Trend analysis can develop a sense of the volatility of a time series by looking at how the historical data varies around the trend line, although trend analysis provides no summary measure of volatility. Trend-fitting calculations are simple, and most spreadsheets automate the process of trend analysis. Regression analysis is a way to describe the relationship between two or more
More DetailsEnquire NowBasic Statistical and Quantitative Methods
The use of quantitative data is at the heart of finance. There are several core evaluative techniques used to interpret quantitative data, so that financial decisions are based on a reasonable forecast of the future. Indeed, all financial decisions contain some implicit forecast. Every decision made by a banker or bank customer is made under conditions of uncertainty. Uncertainty arises
More DetailsEnquire NowUncertain Cash Flow Combinations
Measures of association are important because most risk analysis involves more than a single series of prices, rates, or cash flows, and financial managers must analyze the risk of combinations of securities. Association between assets affects the overall level of risk in the portfolio. Hedging, one of the primary means of reducing risk, depends on determining whether there is positive
More DetailsEnquire NowDuration and Convexity
Interest rate risk is taken seriously by bond investors. Investors want to be able to compare the risk of holding different bonds, since bonds have varying sensitivity to changes in interest rates. Duration and convexity are tools that enable the portfolio manager and individual investor to identify the risk in specific bonds. This not only lets them choose the right
More DetailsEnquire NowDuration Properties
In simple terms, duration or, more specifically, modified duration (which will be defined later) is a measurement of the price sensitivity of a financial instrument (more specifically, any series of cash flows) to changes in interest rates. That is, modified duration is a means to determine, with a high degree of accuracy, how much the present value (or price) of
More DetailsEnquire NowQuantitative and Fixed Income Analysis
The calculation and interpretation of prices, yields, and volatility are critical to risk managers. The key calculations needed to pass the FRM exam are: time value of money (using both discrete and continuous compounding); bond prices and yields; annuities; duration and convexity; correlation; slope of a line (univariate regression); and joint probability and the binomial distribution. In addition, an understanding
More DetailsEnquire NowCredit Spreads, Correlation and CDS Indexes
Credit derivatives pricing is based on the credit or risk spread over a floating rate benchmark (e.g., LIBOR or EURIBOR) at which a particular entity's debt will trade. This spread has historically been different for bonds and loans, but the development of the credit derivatives market has caused these spreads to narrow - a logical expectation, as both spreads reflect
More DetailsEnquire NowCorrelation and Causality
Measures of association are important, because most risk analysis involves more than a single series of prices, rates, or cash flows. Financial managers must analyze the risk of combinations of securities. A portfolio manager may have hundreds of different stocks, bonds, or loans in a portfolio and wants to measure and minimize the risk of the entire portfolio. A corporate
More DetailsEnquire NowNet Present Value and Internal Rate of Return
When choosing between investments with unequal cash flows generated over equal time periods, the most common calculations are net present value and internal rate of return. NPV is the sum of all the present values of the cash flows for a given investment. Internal rate of return is the discount rate that will produce a net present value of zero
More DetailsEnquire NowCompound Interest
The frequency of compounding is one of the key differences between quoting conventions in different markets. Annual returns are expressed as an annual nominal interest rate, also called the quoted interest rate, which is the annual rate before compounding. A periodic rate is the nominal rate divided into periods: daily, monthly, quarterly, or semi-annually. If quoted instruments do not have
More DetailsEnquire NowCalculating Prices and Yields
Calculating the yields on different financial instruments is an essential skill for every banker. A debt instrument is priced by using its yield to maturity to discount its cash flows, and each type of instrument contains different cash flow structures. Several yield calculations apply to long-term, interest-bearing instruments, including the coupon rate, current yield, yield-to-maturity, bond equivalent yield, and ISMA
More DetailsEnquire NowValuing Bonds Using Option-Adjusted Spreads
Option-adjusted spread (OAS) methodology addresses a major difficulty in valuing bonds with embedded options: the fact that the bond's cash flows change when the options are exercised. By explicitly incorporating an estimate of interest rate volatility into the bond's value, OAS methodology produces better valuations and more informed decisions by fund managers, traders, and issuers. The unit covers the development,
More DetailsEnquire Now