What are Credit Ratings?
A credit Rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to ...
Volatility Smiles
Volatility smiles are implied volatility patterns generated when option traders allow implied volatility to depend on...
What is a Subprime Mortgage?
A subprime mortgage is a loan secured by real estate and issued to a credit-worthy borrower.Subprime borrowers have a...
Migration Risk
Migration risk is the risk that the credit quality of a debtor decreases following the lowering of credit ratings.
Bond Valuation
Bond Valuation is the amount of money that investors are willing to pay for the stability and guaranteed interest tha...
Exposure, Loss Given & Probability Defaults
After the financial crisis, international laws were added to reduce the Exposure at Default, Loss Given Default and P...
European Options
A European options contract limits execution to the expiration date, providing more certainty for the buyer.
Expected Loss
The expected loss is the amount of money that a company anticipates losing in the normal course of operations.
Country Risk
Country risk is the potential loss that may be incurred by foreign investors when investing in a specific country.
Auto-Regressive
Auto-Regressive models are used in statistics, econometrics, and signal processing to represent random processes.