Blog Posts

The global financial system is a complex network of financial institutions, markets, and instruments that enables the flow of capital and resources within a country as well as across international borders. This web of economic interactions facilitates trade, investment, and wealth distribution among nations. By connecting markets and economies, the global financial system plays a […]

Determining the net worth of a central bank is not as commonly done, as it might be for examining the finances of a company, individual, or fiscal government. After all, you generally can’t invest in a central bank – though the central banks of Belgium, Japan, Greece, Switzerland, and South Africa are all publicly traded. Unlike […]

Convexity is a measure of the curvature in the relationship between bond prices and bond yields. It demonstrates how the duration of a bond changes as the interest rate changes. This concept is particularly important in the context of zero-coupon bonds, which are bonds that do not pay interest during the life of the bond. […]

Though less understood than traditional directional trading strategies, multi-asset volatility arbitrage (MAVA) involves harnessing profiting from volatility in the markets. At its core, multi-asset volatility arbitrage is a strategy that relies on the volatility differentials of various asset classes. Below we look into the details of multi-asset volatility arbitrage, its benefits, risks, and how traders […]

Long-Term Capital Management (LTCM) was a highly successful hedge fund in the mid-1990s that was founded by John Meriwether, a former vice-chairman and head of bond trading at Salomon Brothers. LTCM’s team included several Nobel laureates and the group had a track record of exceptional returns through complex, high-risk strategies. LTCM’s eventual failure has become […]

We look at the history of the British Pound, its rise as the world’s top reserve currency, the factors that contributed to its decline, and the lessons that traders and investors can draw from its history.   Key Takeaways – The Rise and Fall of the British Pound The history of the British Pound underscores […]

From 1434 to 2002, the Dutch Guilder embodied the economic ebb and flow of the Netherlands. Emerging as a regional currency, the Guilder steadily ascended to international prominence during the Dutch Golden Age, becoming a symbol of the nation’s economic strength. Yet, like all things, it was not immune to the inevitable cycles of rise […]

Currency pegging is one technique that nations use to stabilize their economies by tying their currency’s value to that of a stronger, more stable currency, often the US dollar or euro. However, these pegs are not invincible. They can, and do, break under certain circumstances, especially when the exchange rate is out of whack relative […]

Economic surveys are vital tools that help in the understanding of various facets of an economy that traditional data can’t capture (because they’re based on forward expectations). These surveys provide data about growth, consumption, employment, and numerous other factors that contribute to the health of an economy.   Key Takeaways – Economic Survey Reliability Economic […]

The S&P 500 is a benchmark index, comprising 500 of the largest US publicly traded companies. It represents the performance of the stock market by reporting the risks and returns of the biggest companies. Investors use it as the benchmark of the overall market, to which all other investments are compared. Below we’ll look at […]