Category: Uncategorized

Commercial Paper: Definition and Examples

Money markets are financial markets where parties transact in short-term debt instruments. Usually, money markets involve a large volume of transactions between sellers and buyers. These usually include institutions and traders. Similarly, several types of debt instruments are available on money markets. One of these includes commercial papers. What is …

Risk Management in the Middle Office

Not all risks are created equal. The risk of losing your job is much more serious than the risk of just being embarrassed when you show up to work in a mismatched outfit! Considering that, it’s no surprise that middle office workers spend their days surrounded by very different types …

Back Offices in Banks

A back office in a bank simply refers to the section where all the work is done in connection to finance. The back office is responsible for the accounting and financial processing of both customers and staff. A bank has many different jobs ranging from service, administration, and operations to …

What Does Enterprise Risk Management Mean

When you hear the word “enterprise,” what springs to mind? Maybe a big company like Coca-Cola or IBM. Rarely do people think of an enterprise as being their own business? But in fact, every small business is also an enterprise. The thing that differentiates a small business from other types …

Fallen angels investment strategy

Fallen Angel’s investment strategy is a type of aggressive investment strategy, which has the potential to yield high returns. At the same time, it also entails high risk for investors. These investments are often made by venture capitalist firms in startup companies that have failed to get off the ground …

Hedge Fund Investment Due Diligence

Hedge fund investment is a type of private equity. Hedge funds are less regulated than mutual funds, and traditionally do not have the same liquidity requirements as other investments. They invest in stocks, bonds, currencies, commodities, and derivatives, which offer high-risk/high-return potential. Due to this high-risk factor, it is important …

Hedge Funds as Diversifiers

Hedge funds are investment pools that represent a variety of investments, including stocks and other securities. Diversification is the act of investing in multiple assets to reduce risk exposure from any one asset. Hedge funds may be an effective means for investors to increase their diversified portfolios without having to …

Equity Long Short Hedge Funds

The investment objective for each investor may differ. However, most investors have one common goal, to increase their wealth. For that, they employ investment strategies that meet their requirements. There are many of these strategies that provide investors with different options. One of these includes the equity long-short investment strategy. …

Global Macro Hedge Funds

A country’s economy plays a significant role in the prices of items within it. The economic factors in a nation also dictate the investments market. Most security prices fluctuate with fluctuations in a country’s economic environment. Some investors may take advantage of these fluctuations and base their investment strategy accordingly. …

What are Event-Driven Hedge Funds

Investment strategies include principles that seek to achieve an investor’s financial and investment objectives. These strategies may differ from one investor to another based on various factors. These factors may include the investor’s goals, resources, time horizon, risk tolerance, etc. Similarly, some investment strategies may also depend on specific circumstances …