Learning Curve

Most company directors know that they must act for the good of their companies.

The potential exists for a cross-border market for emissions trading.

Multi-asset class exotic business is highly dependent on Monte Carlo. In this article, we shall show a simple but powerful idea on the numerical side of Monte Carlo.

In this Learning Curve we introduce a new framework for calculating and reporting correlations embedded in tranche prices: Base Correlations.

Globally, the continued squeeze on credit-default spreads has made it increasingly difficult for banks to arrange synthetic CDO transactions which offer sufficient return to attract investors (particularly for the equity tranche) whilst allowing the swap counterparty to retain a sufficient yield.

This is the first of two articles that set out to demystify emissions trading.

For many years, the high volatility of foreign exchange markets has made them attractive to speculators.

When confirmations are exchanged electronically, whether by facsimile, e-mail, or a secure Web site, a threshold question is whether electronic transmission of the confirmation affects the extent to which the confirmation may be relied upon to evidence the existence and terms of the underlying transaction.

For market makers in plain-vanilla equity index derivatives on electronic exchanges, such as Eurex, computational speed is essential in incorporating market information and updating quotes.

As more investors have started looking at hedge funds the methods of gaining exposure have also increased.

The performance of an asset manager in a CDO is vital to its success.

As issuance of synthetic CDOs linked to corporate reference entities has slowed, arrangers in the European market have looked to alternative reference assets-and in particular ABS-to maintain deal flow.