Investment Banking

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 […]

Investment Banking

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 […]

Investment Banking

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 […]

Investment Banking

How to choose Health Insurance Plan?

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Before choosing a health insurance, consider these thumb rules: Thumb Rule 1: Insurance is not investment. No matter how enticing it is, stay away from insurance plans where you’ll get back invested money in some time. Thumb Rule 2: You are the best judge of your requirements. Read this article, listen to insurance experts and […]

Investment Banking

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 […]

Investment Banking

Derivatives: Call and Put Options

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Put Option: If you buy Put option that means you will benefit if price of asset falls. Example, price of an asset is USD 10 right now, you buy Put option for USD  1 for exercise price of USD 8 with validity of 1 month. Within 1 month if price fell, say, to USD 5 […]

Investment Banking

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 […]