Credit Default Swap, Example & Importance
Credit default swaps (CDSs) are financial derivatives that pay off when issuer of a reference instrument defaults.
Chi Square Distribution
The chi-squared distribution is frequently encountered when testing hypotheses about model parameters
What is Uniform Distribution?
A uniform random variable is the simplest continuous random variable
Role of Tranches in the Securitization
Tranches are segments created from a pool of securities usually debt instruments such as bonds or mortgages that are ...
GARP Code of Conduct
The GARP Code of Conduct is a set of basic principles aimed at assisting financial risk management.
Corporate Governance with Examples
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled.
Netting
Netting is defined as the method in which payments are offset so that only one party needs to make a payment
What is Covariance?
Covariance is a measure of dispersion that captures how the variables move together.
Definition of Risk with Examples
Risk is the uncertainty surrounding outcomes. We may also refer it as ‘volatility’ around outcomes.