Collateral Operation in Investment Banking – need to consolidate siloed infrastructure

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With rise of volatility in markets due to various factors it has become more imperative to hedge credit risk. Collateral has been the instrument of hedging since the inception of investment banking. Collateral management takes a considerable amount of infrastructure and operational cost. Regulations like MIFID-II, EMIR, Dodd-frank, UMR etc. and best practices recommended by […]

Bitcoin -in layman terms

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In this blog we will understand Bitcoin in plain English. After reading this article you will understand basics of following jargons also: Ledger Block and Blockchain Cryptography & Crypto Currency ECDSA Mining Public and Private Key Wallet (software/hardware/paper)   For an end user of Bitcoin, it is like medium of exchange. Bitcoin is like a […]

Three key jargon and personal recommendation for Health Insurance Plan

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Premium:   This is what you pay to insurance company to continue your policy. Refer to websites who provide comparison between company, premiums and policies. Also consider company’s reputation before choosing lowest premium. Deductible: This is the fixed amount you pay to hospital in case of contingency. Example, your hospital bill is $10,000 and deductible is […]

Derivatives: Law of one price

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Valuation of derivatives is different than the valuation of equities. Before we understand “Law of one price”, let us see some jargons. Arbitrage: If you can buy an asset at lower price and immediately sell it at higher price with no risk, then it is called Arbitrage. Replication is essence of arbitrage. Replication: Creation of […]

OTC Bilateral Trades – Portfolio Reconciliation Tool Review – TriResolve

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When two parties do OTC (over-the-counter) trading they need to do reconciliation of their portfolios to acknowledge and recognize that both are at the same page. Disputes shall be resolved as soon as possible. Doing reconciliation regularly and frequently is not only good practice but is also a mandate from regulators. Few trades may be […]

Derivatives – Basics – 2 categories that cover all in the world

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Definition: Derivative is a financial instrument that derives its performance from the performance of the underlying asset. Types of Derivatives: Forward Commitments – spot market transaction in future date Forward Contract Futures Contract Swap Contract Contingent Claims – on conditional event Options Credit Derivatives Asset-backed securities In forward commitments, you usually do not pay anything […]

Derivative – Basics – understand the definition from kids’ point of view

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When you were kid, you were first taught the alphabets. Nothing in literature falls out of alphabets. However, after completing PhD in literature you understand that you know nothing about literature. Similarly, here is the ABCD of Derivatives. Definition: Derivative is a financial instrument that derives its value from the value of the “underlying” asset. […]