Tag Archives: Correlation

Equity index and Designing an Index

Categories: Asset Classes, Equities
Equity indexes are weighted baskets of individual stocks. The Equity Index is a value that is proportional to the market value of the individual stocks underlying the index. The value of the index changes as the values of the individual stocks...

Risks associated with investments

Categories: Risks
In any investment, an investor is exposed to several kinds of risks. The risks associated with investments are liquidity risk, market risk, credit risk, operational risk, prepayment risk and extension risk. If the investor decides to go in for...

An Overview of Structured Finance

Categories: Derivatives
What is structured finance? Structured Finance enables efficient refinancing and hedging profitable economic activity beyond the scope of conventional form of on-balance sheet securities with a view to reduce cost of capital and to mitigate...