Blog Posts

Finance is a popular ground for the application of sophisticated mathematical techniques. From trading and investment strategies and risk assessment to predicting market movements, math provides the basis for a wide range of financial tools and methods. Here we discuss the various mathematical techniques used in financial markets.   Key Takeaways – Mathematical Techniques in […]

The financial markets are filled with various kinds of trades and investment options and each of these comes with different levels of risk and reward. To make informed trading or investment decisions, it’s vital to have a means of assessing the performance of various financial assets. Here we’ll look at a number of performance measurements […]

Post-Modern Portfolio Theory (PMPT) emerged as a response to the limitations and criticisms of Modern Portfolio Theory (MPT), which has been the cornerstone of portfolio management since its introduction by Harry Markowitz in the 1950s. MPT focuses on optimizing risk and return through diversification and asset allocation based on historical data. However, PMPT brings new […]

A portfolio is a collection of financial investments like stocks, bonds, cash equivalents, fund units, etc., held by investment companies, hedge funds, or individual investors. The concept of a portfolio stems from the theory of diversification, which proposes that a trader/investor can reduce risk by putting their funds in different kinds of investments/trades/returns streams.   […]

Financial modeling refers to the process of creating a summary of a company’s expenses, earnings, and performance. It’s used to predict, understand, and optimize the company’s financial performance, particularly in terms of cash flow, the required return, terminal value, and forecasted financial statements.   Key Takeaways – Financial Modeling Financial Modeling: Creating summaries of a […]

Determining the true value of a company is not always straightforward. Beyond the mainstream methodologies are various unique approaches to valuation, each offering a distinct perspective on a company’s worth. We look at techniques that may not be as widely recognized, but are equally viable in the right context and application. From the classic fundamentals-based […]

Relative valuation, also known as comparable valuation, is a method used to determine the value of different assets including bonds, real estate, and equities. This technique involves comparing the asset in question with other similar assets to derive its value. Let’s look into how relative valuation is applied across different asset types.   Key Takeaways […]

An embedded option is a feature that can be attached to bonds that allows, but does not require, either the bondholder or the issuer to take some action in the future. It gives one party the right, but not the obligation, to undertake certain actions that may be advantageous given market conditions.   Key Takeaways […]

Determining the value in markets is an important part of investing and trading. To understand how to determine value, we’ll cover several key concepts and principles, including fair value, intrinsic value, market price, expected value, opportunity cost, and risk premium. These concepts will then be framed in the context of valuation risk, real versus nominal […]

Investment banking is a highly competitive and lucrative industry that offers numerous career opportunities for individuals with a strong financial background. However, securing a job in investment banking requires passing rigorous interviews, where candidates are tested on their knowledge, skills, abilities, and behavioral tendencies. Accordingly, it’s important for aspiring investment bankers to be well-prepared and […]