Category: DERIVATIVES

What is a Credit Default Swap?

Investors can use various hedging techniques to mitigate the risks associated with their equity and debt instruments. These techniques include the use of options, swaps, forwards, futures, etc. Usually, these use derivates, which are financial securities that get their value from an underlying asset or group of assets. One method …

Inflation-Linked Bond

Inflation is a concept used in economics and finance. It refers to the decline in the purchasing power of a currency over a specific period. Usually, inflation can have positive and negative effects in several fields. For investors that have a fixed income source, such as bonds, inflation can be …