Concentration Risk and Concentration Ratio
Concentration risk is the risk of financial loss that may arise due to exposure to multiple counterparties for a spec...
Solvency II
Solvency II is a Directive in European Union law that codifies and harmonizes the EU insurance regulation.
Forward Rates
Forward rates is the settlement price of a transaction that will not take place until a predetermined date. The futur...
Collateralization
Collateralization concept says that when two parties are involved in a trade, one party will have a negative exposure
What is a Confidence Interval?
A confidence interval is a range of parameters that complements the rejection region.
Scenario Analysis
Scenario analysis is a method of evaluating probable future risk factors & alternative outcomes. It assesses the impa...
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...