Those of you just starting in the field of investment have most likely heard about one popular financial instrument: the stock. In fact, thousands of stocks are traded on the U.S. stock exchanges every day. But what exactly is a stock? Basically, a stock is a unit of ownership in a company. The value of [...]
USE OF INTEREST RATE DERIVATIVES
There is now a wide range of interest rate derivatives available in most developed markets. These derivatives provide bank treasuries with tools to change their exposure to shifts in interest rates without having to act to change the composition of the banks’ balance sheet directly. The latter is difficult to achieve quickly and efficiently in [...]