Blog Posts

A Synthetic Call is a trading strategy that is designed to replicate the payoff of a traditional call option using a combination of other financial instruments, such as stocks and options. Goal of a Synthetic Call The goal of a Synthetic Call is to create the same profit potential as a call option, while avoiding […]

Macaulay Duration measures the average time it takes to receive the bond’s total cash flow. It is calculated by dividing the sum of all discounted cash flows by the sum of current market value of the bond. Modified Duration, on the other hand, is similar to Macaulay Duration in that it also measures how long […]

Dim sum bonds are securities denominated in offshore Chinese currency, known as the Renminbi (RMB) or Yuan (CNY). They are issued in Hong Kong and used for raising capital from international investors. Dim sum bonds generally offer higher yields than domestic Chinese bonds and provide access to RMB investments, which provides a source of currency […]

Fundamental analysis is a method of evaluating the intrinsic value of a financial asset, such as a stock, bond, or commodity, by examining the underlying economic and financial factors that may influence its value. In fundamental analysis, a trader/investor looks at the financial health and performance of the company, industry, or sector. This analysis includes […]

Mezzanine debt is a type of financing that falls between debt and equity. It is called “mezzanine” debt because it is structured as a junior, subordinate debt that is subordinate to the senior debt. It is typically used by companies that have already exhausted other sources of financing, such as traditional bank loans, and are […]

Thematic investing is an investment strategy that focuses on identifying and investing in companies that are positioned to benefit from long-term trends that are transforming the way we work and live. These trends, which can be technological, demographic, social, or environmental in nature, are expected to have a significant impact on the global economy and […]

A vulture fund is a type of investment fund that specializes in buying debt that is in default, typically from governments or companies in distressed financial situations. The goal of a vulture fund is to make a profit by purchasing the debt at a discounted price and then either suing the borrower for the full […]

What Is Fiat Money? Fiat money is a type of currency that is not backed by a physical commodity such as gold or silver, but rather by the government that issues it. The value of fiat money is derived from the faith and trust that people have in the issuing government, rather than the intrinsic […]

What Are Porter’s Five Forces? Porter’s Five Forces is a framework developed by Michael Porter to analyze the competitive dynamics of an industry. The framework is made up of five different forces that determine the intensity of competition in an industry and the profitability of companies within it. These forces are: Threat of new entrants […]

What Is Accounting Fraud? Accounting fraud refers to the intentional manipulation of financial records in order to deceive investors, creditors, and other stakeholders. This can take many forms, such as overstating revenues or understating expenses in order to inflate a company’s financial performance. One common form of accounting fraud is known as “cooking the books,” […]