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Bull and Bear Spread

Bull and Bear spread are two common hedging strategies.

Owais Siddiqui
24 Oct 2022
1 min read

Continental Illinois

Continental Illinois was at one time the largest bank in Chicago which aggressively pursued both commercial and indus...

Owais Siddiqui
24 Oct 2022
1 min read

Risk Aggregation

In order to determine the total enterprise risk for a financial institution, all risks must be aggregated and analyzed

Owais Siddiqui
24 Oct 2022
1 min read

Potential Future Exposure

Potential Future Exposure is actually derived from MTM and revaluing the portfolio and considered an estimate of MTM,...

Owais Siddiqui
24 Oct 2022
1 min read

Backtesting VaR

Backtesting attempts to verify whether actual losses are reasonably consistent with projected losses.It compares valu...

Owais Siddiqui
24 Oct 2022
1 min read

Option Adjusted Spread

The option-adjusted spread is spread that makes sure that the model value (calculated by the PV of projected cash flo...

Owais Siddiqui
24 Oct 2022
1 min read

Sovereign Risk

Sovereign Risk is the risk that the country will default on its financial obligations.

Owais Siddiqui
23 Oct 2022
1 min read

Conditional Prepayment Rate

The CPR is the annual rate at which a mortgage pool balance is assumed to be prepaid during the life of the pool.

Owais Siddiqui
23 Oct 2022
1 min read

Counter Cyclical Buffer

Basel III recommends that banks have a capital buffer to protect against the cyclicality of bank earnings, called the...

Owais Siddiqui
23 Oct 2022
1 min read

Vasicek Model for Probability of Default Modelling

Vasicek Rate Model refers to a mathematical method of modeling the movement and evolution of interest rates.

Owais Siddiqui
23 Oct 2022
2 min read