Blog Posts

Liquidity is a fundamental concept in economics and finance that plays a significant role in the smooth functioning of the global economy. It refers to the ease and speed with which assets can be converted into cash or the ability to meet financial obligations without incurring significant losses. A proper understanding of liquidity is essential […]

Derivatives have a long and complex history that traces back to ancient civilizations. These financial instruments have evolved significantly over time and have become an important tool for managing risk, hedging investments, and even speculating on market movements. We’ll take a look at the evolution of derivatives from ancient cultures to the modern era, highlighting […]

The history of money is a fascinating subject that spans thousands of years, starting from the simple barter system of ancient Mesopotamia to the payment systems of today. In this article, we look at the evolution of money, focusing on its various forms and systems, the theories behind its development, and its impact on societies […]

Over-investing is a common phenomenon in personal finance, particularly when dealing with assets that serve both as investment goods and consumption goods. This behavior can lead to spending more on an asset than its true market value and can have financial consequences. In this article, we’ll look into the concept of over-investing, its causes, and […]

The Cox-Ingersoll-Ross (CIR) Model is a short-rate mathematical model used in finance to describe the evolution of interest rates over time. Developed by John C. Cox, Jonathan E. Ingersoll Jr., and Stephen A. Ross in 1985, the CIR model is one of the most widely used interest rate models in the finance industry. Its primary […]

The Vasicek Model, named after its creator Oldrich Vasicek, is a popular short-rate mathematical model used in finance to predict interest rates. First published in 1977, it was one of the first models to describe the evolution of interest rates using stochastic calculus. The model’s primary purpose is to capture the mean-reverting behavior of interest […]

A short-rate model, in the context of interest rate derivatives, is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate. In finance, the short rate represents the instantaneous interest rate applicable for a very short period. It’s often called the “cash rate,” “repo rate,” […]

The risk-free interest rate is a fundamental concept in finance that serves as the baseline for evaluating various investment options. It represents the return on an investment considered to have no risk (i.e., no default risk), such as a government bond, over a specified period. This article looks at the measurement and proxies of the […]

A yield curve is a graph that plots the yields of fixed-income securities against their maturities. The maturities of the securities are typically shown on the x-axis, and the yields are shown on the y-axis.     A yield curve typically has an upward slope, which means that securities with longer maturities generally have higher […]

Fixed income analysis involves evaluating the value and risk of debt securities. These analyses play a role in deciding whether to buy, sell (short sell), hold, hedge, or avoid a particular security. Fixed income products, which primarily consist of bonds, are issued by various entities, including government treasuries, government agencies, companies, and international organizations. This […]