Wall Street Mojo

FEBRUARY 9, 2024

For example, a portfolio has cash flows that match put options in the market. Replicating Portfolio Approach Explained Replicating portfolio involves the pooling of assets in a manner that allows portfolio managers to easily hedge the risks of these assets and balance the risk-return of the target asset.

Portfolio 52

Portfolio Portfolio Management Insurance Risk Management 52

Peak Frameworks

MAY 24, 2023

During the 2008 financial crisis , put options (which give the holder the right to sell at a specific price) on mortgage-backed securities and major stock indexes increased in value dramatically as the market plummeted. Role of Derivatives in Portfolio Management Derivatives play a crucial role in modern portfolio management.

Portfolio Management 52

Portfolio Management Private Equity Investors Risk Management 52

Wall Street Mojo

JANUARY 17, 2024

In the process of interest rate swap valuation , a fixed rate is exchanged for floating rate by taking advantage of the rate fluctuations in the financial market in order to obtain lower rates. This was when many fixed-income players started actively participating in the market. Without swap, this would nit have been possible.

Financial Institution 91

Financial Institution Bank Banking Financial Modeling 91