A credit derivative is a tool designed to transfer credit risk between two parties: a credit risk seller and a...

In a newly issued swap, the fixed rate equals the swap rate. When principal amounts are added to both legs...

Gearing (or leverage), in the world of finance, is a double edged sword. It works both ways- for the investor...

Cost of carry is a measure of the relationship between futures prices and spot prices. This cost consists of the...

Swaps can be used to allocate assets within a fund/ portfolio while maintaining its actual composition of equity or fixed...

A swap can be marked to market when its settlement takes place by periodically readjusting its payments to market rates....

A currency swap entails the exchange of two series of payments and two notional principal amounts each denominated in a...

A forward contract is the simplest type of derivatives, as it constitutes a future-delivery sale transacted today. Once the contract...

In the realm of finance, gearing (or leverage) has both its advantages and disadvantages. As far as derivatives are concerned,...

A forward contract has no value at the time it is first entered into (i.e., its net present value is...