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A coupon is the interest payment received by a bondholder from the date of issuance until the date of maturity of a bond. Learn about the history, valuation, and types of bonds, including zero-coupon bonds that pay no coupons and have a price less than their face value.
Brady Bonds are dollar-denominated bonds issued by Latin American countries in the late 1980s to convert bank loans into tradable instruments. They were named after U.S. Treasury Secretary Nicholas Brady, who proposed a novel debt-reduction agreement for developing countries.
1904 cartoon warning attendees of the St. Louis World's Fair of hotel room price gouging. Price gouging is a pejorative term used to refer to the practice of increasing the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair by some.
Learn the difference between Macaulay duration and modified duration, two measures of the time and price sensitivity of fixed income securities. Macaulay duration is the weighted average of the times until cash flows, while modified duration is the rate of change of price with respect to yield.
A convertible bond is a hybrid security that can be converted into shares of common stock or cash of equal value. Learn about the origin, benefits, drawbacks and variations of convertible bonds, such as vanilla, mandatory, reverse, packaged and contingent convertibles.
TARP was a response to the subprime mortgage crisis and the financial market turmoil in 2008. It allowed the Treasury to purchase or insure up to $700 billion of illiquid assets from banks and other institutions, and to issue equity or debt securities in return.
For (ii) on value at risk, or "VaR", an estimate of how much the investment or area in question might lose with a given probability in a set time period, with the bank holding "economic"-or “risk capital” correspondingly; common parameters are 99% and 95% worst-case losses - i.e. 1% and 5% - and one day and two week horizons. [28]
Pump and dump is a form of fraud that artificially inflates the price of a stock and then sells it at a higher price, causing the price to fall. Learn about the scenarios, examples, and history of this scheme, especially in the context of cryptocurrencies and penny stocks.