Month: March 2020

Net exposure is the difference between a hedge fund’s long positions and its short positions. Expressed as a percentage this number is a measure of the extent to which a fund’s trading book is exposed to market fluctuations.

A balanced budget is a situation in financial planning or the budgeting process where total revenues are equal to or greater than total expenses. A budget can be considered balanced in hindsight after a full year’s worth of revenues and expenses have been incurred and recorded. A company’s operating budget for an upcoming year can also be called balanced based on predictions or estimates.

The 10-year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. A 10-year Treasury note pays interest at a fixed rate once every six months and pays the face value to the holder at maturity. The U.S. government partially funds itself by issuing 10-year Treasury notes.

Cryptocurrency, altcoins, and crypto tokens are often erroneously used interchangeably in the virtual currency world. However, cryptocurrency is the superset, and altcoins and crypto tokens are its two subset categories.

A cost-plus contract is an agreement to reimburse a company for expenses plus a specific amount of profit, usually stated as a percentage of the contract’s full price. Cost-plus contracts are also referred to in the business world as cost-reimbursement contracts.

The Heath-Jarrow-Morton Model (HJM Model) is used to model forward interest rates. These rates are then modeled to an existing term structure of interest rates to determine appropriate prices for interest rate sensitive securities.

The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports. The current account includes net income, such as interest and dividends, and transfers, such as foreign aid, although these components make up only a small percentage of the total current account. The current account represents a country’s foreign transactions and, like the capital account, is a component of a country’s balance of payments (BOP). read more

The Heath-Jarrow-Morton Model (HJM Model) is used to model forward interest rates. These rates are then modeled to an existing term structure of interest rates to determine appropriate prices for interest rate sensitive securities.

The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports. The current account includes net income, such as interest and dividends, and transfers, such as foreign aid, although these components make up only a small percentage of the total current account. The current account represents a country’s foreign transactions and, like the capital account, is a component of a country’s balance of payments (BOP). read more

The European sovereign debt crisis was a period when several European countries experienced the collapse of financial institutions, high government debt, and rapidly rising bond yield spreads in government securities.