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Articles and free lessons, newest first.
May 21, 2011 · Securities & Markets · Chapter
What is Macaulay Duration?
The duration of a fixed income instrument is a weighted average of the times that payments (cash flows) are made. The weighting coefficients are the present value of the individual cash flows.
May 17, 2011 · Risk Management · Chapter
Factors Affecting Recovery Rates
It is practically impossible to accurately predict the recovery rates. There are various factors that will affect the recovery rates of a defaulted loan.
May 17, 2011 · Risk Management · Chapter
Using Beta Distribution for Estimating Recovery Rates
Most of the people use the beta distribution to model recovery rates. In probability theory and statistics, the beta distribution is a family of continuous probability distributions defined on the interval (0, 1) parameterized by two positive shape parameters, typically denoted by alpha and beta.
May 16, 2011 · Risk Management · Chapter
Expected Loss, Unexpected Loss, and Loss Distribution
While the terms expected loss and unexpected loss are commonly used in risk management, it is important to have a clear understanding of what they actually mean.
May 16, 2011 · Risk Management · Chapter
Exposure, Default and Recovery Rates
In order to understand default risk, we will analyze the its key components: Default arrival, exposure at default, and loss given default.
May 16, 2011 · Risk Management · Chapter
Understanding Recovery Rates
The recovery rates are a crucial element for calculating credit risk. The loss given default of an asset or a portfolio is calculated as 1 minus the recovery rate.
May 13, 2011 · Risk Management · Chapter
What is Default Risk?
Default risk can be defined as the risk that the counterparty to a transaction does not honour its obligation. Default could be both in terms on monetary and non-monetary terms, and it's a part of every transaction.
April 25, 2011
Choosing The Best Lender for your Loan Needs
In today`s time, when you start your search for a home loan, you will immediately get multiple offers from various banks claiming to provide you the best offer. What are the criteria for selecting whom to go with?
April 9, 2011 · Securities & Markets
How the Financial System Works?
This is an easy to understand video of how the financial system works.
March 29, 2011 · Financial Analysis
Understanding the Credit Crisis
This video clearly explains the credit crisis in a very interesting manner.
March 25, 2011 · Financial Analysis
How to Calculate Earnings Before Interest and Tax (EBIT)
This video will show you how to use the EBIT calculating system to figure out what a company's profit will be before tax and interest.
March 25, 2011 · Financial Analysis
Implementing IFRS
This video from Ernst & Young talks about the challenges in implementation of IFRS and the differences between IFRS and national GAAPS.
March 25, 2011 · Financial Analysis
Introduction to International Financial Reporting Standards (IFRS)
Stacey Tedeschi provides an introduction to IFRS 'International Financial Reporting Standards'.
March 18, 2011 · Investment Management · Chapter
Banking: Introduction to Leverage
March 9, 2011 · Statistical Methods
Fibonacci Sequence and the Forex Market
In this article, we are going to discuss the basic mathematical notion behind Fibonacci theory, and we are going to discuss a basic Fib Strategy that works.
March 3, 2011 · Investment Management
The World of Investment Banking
An investment bank is a special type of financial institution that works primarily in higher finance by helping company access the capital markets, such as stock market and bond market, to raise money for expansion or other needs.
March 2, 2011 · Investment Management · Chapter
Fractional Reserve Banking System
January 16, 2011 · Financial Analysis
QuickBooks
January 8, 2011 · Excel & Spreadsheets
How to Get Stock Quotes in Excel - MoneyCentral Stock Quotes Add-in for Excel
You will often find the need to get the real-time stock quotes in excel for the purpose of analysis or tracking your portfolio. There are many ways you can get these quotes. In this article I will tell you about how you can make use of <strong>MSN MoneyCentral Stock Quotes Add-in </strong>for this purpose.
January 7, 2011
How to Pass the CFA Level II Exam
First of all, congratulations on passing the CFA Level I exam. Now that you are through with the first exam, you can start preparing for the Level II exam. The Level II exam sits at a critical point in the candidate’s roadmap and some consider this exam to be the hardest of the three.
January 6, 2011 · Financial Analysis · Chapter
Cost Accounting
To understand if a product is truly profitable all costs have to be accounted for. Every cost accounted for shows if a profit is made in that product line. More often than not, companies look at making profit through volume sales. This is a fallacy.