Understanding investment risk in superannuation is crucial for your retirement account. Here's a guide on how to define, take ...
The only way to combat that is to invest your money and grow it at a faster rate than the forces that are whittling it away.
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Broadly, basis risk is the risk that the value of a futures contract or an over-the-counter hedge will not perfectly offset an underlying position. Other examples abound: interest futures are often ...
Ratings agencies quantify the amount of credit risk associated with bonds so investors can understand exactly what they’re getting into. When an investor purchases a bond, they are essentially ...
Interest rate risk in the banking book is the risk posed by adverse movements in interest rates that cause a mismatch between the rates banks set on customer loans and on deposits. For example, if ...
Moral hazard is the risk that a party has not entered into a contract in good faith or has provided misleading information about its assets, liabilities, or credit capacity. In addition ...
We often hear people say that they are good as long as things just keep on moving up and to the right. If only that were the reality. Of course, if given long enough, that’s what happens.