Blog Posts
Quad Witching (Triple Witching)In markets, certain events can have a significant impact on trading volumes and market volatility. One such event is known as quadruple witching or, more accurately in today’s context, triple witching. This phenomenon, which occurs four times a year, refers to the simultaneous expiration of three major types of derivatives contracts: stock options index futures, […]
Buy Side vs. Sell SideThe financial industry is a multifaceted ecosystem where various players interact and collaborate to keep the market wheels turning. Among these players, two key groups that stand out are the buy side and the sell side. Despite their interdependence, they maintain distinctive roles and responsibilities that contribute to the overall functioning of the financial markets. […]
Purchase Price Allocation (PPA)Mergers and acquisitions (M&A) are pivotal events that can transform the trajectory of the involved companies. M&A activities are prevalent as industries evolve. One key aspect of any M&A transaction is the Purchase Price Allocation (PPA), a critical accounting process that determines the fair value of acquired assets and liabilities. The PPA serves as a […]
Commodity CurrenciesIn international finance and trade, commodity currencies play an important role in shaping the dynamics of global economies. These currencies, often also referred to as “resource-based currencies,” derive their value and stability from the exportation of key commodities such as crude oil, gold, copper, and agricultural products. Typically, nations with abundant natural resources and significant […]
Forex CorrelationsForex (foreign exchange) correlations refer to the interconnectedness between different currency pairs in the global foreign exchange market. By understanding these correlations, traders can make more informed decisions, manage risks more effectively, and diversify their portfolios. In this article, we’ll explore key aspects of forex correlations, including types, common pairs, factors affecting them, and their […]
Current Account vs. Capital AccountThe foreign exchange market, also known as the forex market, is the largest financial market in the world. It is a decentralized market where currencies are bought and sold, and the exchange rate between two currencies fluctuates based on a variety of factors. One of the critical factors that affect exchange rates is the balance […]
Central Bank & Government Intervention in Financial Crises: Risks & RewardsDuring times of financial crises, central governments and central banks have a tendency to print money to buy assets and backstop financial markets. This action comes at a cost to the balance sheets of these entities. However, the impact of these actions creates a safer environment for households. Unlike the private sector, central governments and […]
How Tight Monetary Policy Affects Debt AssetsMonetary policy is the set of actions undertaken by a central bank to manage the supply of money and credit in an economy. Tight monetary policy refers to measures aimed at reducing the supply of money and credit, while loose monetary policy refers to measures aimed at increasing the supply of money and credit. […]
Should I Ever Pull Out of the Stock Market?For many investors, the stock market can be a tricky place to navigate. The volatility of the market can be both exciting and terrifying, often making it difficult to know whether you’re looking at an opportunity or a big mistake. One question that often comes up is whether or not an investor should ever pull […]
Endowment Fund – Overview, Types, Policies, StrategiesAn endowment fund is a type of investment fund that is managed by a nonprofit organization or educational institution. The fund is typically funded through donations or bequests, and its primary goal is to generate long-term financial returns that can be used to support the organization or institution. Endowment funds may invest in a variety […]
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