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An 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 […]

Investing is a crucial part of financial planning, and the strategy you use to invest can significantly impact your long-term financial goals. Passive and active management are two different investment strategies that market participants can choose to adopt. Passive management involves buying and holding a diversified portfolio of securities that track an index, while active […]

When it comes to investing in Berkshire Hathaway, the multinational conglomerate headed by Warren Buffett, investors have two options: BRK.A (Berkshire Hathaway Inc Class A) or BRK.B (Berkshire Hathaway Inc Class B) stock. While the two types of shares represent ownership in the same company, there are some key differences that investors should be aware […]

Investing in private assets has become increasingly popular among sophisticated investors looking to diversify their portfolios and potentially achieve higher returns. Private assets refer to investments in assets that are not traded on public exchanges, such as private equity, hedge funds, real estate, and other alternative investments. However, investing in private assets requires certain requirements […]

What Is a Bank Run? A bank run occurs when a large number of depositors, or customers, of a bank or other financial institution simultaneously withdraw their funds because they fear that the bank may become insolvent, or unable to meet its financial obligations. Bank runs can be triggered by rumors or news of financial […]

In a period of monetary tightening, when we’re in the part of the cycle where policymakers see inflation falling, you often see: a perceived upcoming pause in policy tightening, which usually gets… some type of asset market rally, which generally… reinforces the too-high inflation, which generally leads to… additional tightening (higher interest rates), which will […]

What Are Eurobonds? Eurobonds are bonds issued in a currency other than the currency of the country in which the bond is issued. In other words, a Eurobond is a bond issued in a currency that is different from the currency of the country where the issuer is based. For example, a bond issued by […]

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 […]