Blog Category: Financial Terms
Get definitions and guidance on all the terms you need to know within accountancy and finance.
What are Mortgage Backed Securities Prepayment
Mortgage-Backed Securities are long term contracts with payments of both interest and principal.The prepayment option...
Understanding Mortgage-Backed Securities
MBS is a specialised product of Asset-Backed Securities. MBS works through different pooling mortgages and selling th...
What are Population and Sample?
The entire group about whom you want to make conclusions is a population. A sample is a subset of the population you ...
What is Butterfly Spread?
A butterfly spread is another strategy used by the traders. We purchase or sell three different call options in the b...
Risk Management Strategies
Risk strategies are the foundation of risk management and it's important to have a strong understanding of them.
Key Risk Indicators
Key Risk Indicators help monitor the main drivers of key risks and make informed decisions about managing company ris...
What is Capital Asset Pricing Model?
The capital asset pricing model (CAPM) is a key model used for calculating the return of securities by accounting for...
Interest Rate Parity
Interest rate parity is a term that becomes applicable whenever we talk about investing in securities or other assets...
What is Linear Regression?
Linear regression is one type of regression that assumes a linear relationship between a variable (X) and a dependent...
What are Options?
In options trading, the buyer is given the right but not the obligation to buy (sell) an asset against the pre-specif...
Spot Rates
What is Spot Rates? When a lump sum of money is received only once in the future, the spot rate is the interest rate ...
Best Linear Unbiased Estimator
If the variables are normally distributed, OLS is the best linear unbiased estimator under certain assumptions.