Term Structure Academy
Term Structure Academy

Latest

Feb
19
What is a Linear Payoff? What is a Positively or Negatively Convex Payoff?

What is a Linear Payoff? What is a Positively or Negatively Convex Payoff?

Linear Payoffs In Trading & Investing, a linear payoff refers to a financial instrument or investment strategy where the return
1 min read
Feb
19
What is the Now Phased-Out LIBOR? A Trip Down Memory Lane

What is the Now Phased-Out LIBOR? A Trip Down Memory Lane

LIBOR, which stands for the London Interbank Offered Rate, is a benchmark interest rate that indicates the average interest rate
1 min read
Feb
19
What is a Risk-Free Rate? How is that Related to a Risk-Free Security?

What is a Risk-Free Rate? How is that Related to a Risk-Free Security?

Having learned what risk-free securities are, we can now answer the above questions. The risk-free rate is the theoretical rate
1 min read
Feb
19
What is a Risk-Free Security?

What is a Risk-Free Security?

What is a risk-free security? This is a really philosophical question and the best way to answer this question is
1 min read
Feb
19
What is the MOVE (Merrill Lynch Option Volatility Estimate) Index?

What is the MOVE (Merrill Lynch Option Volatility Estimate) Index?

The MOVE Index, short for "Merrill Lynch Option Volatility Estimate," is a measure of market expectations for future
1 min read
Feb
01
What is a Basis Trade?

What is a Basis Trade?

A basis trade refers to a financial strategy in which an investor takes advantage of the price difference, or "
2 min read
Feb
01
What is a Cross Currency Swap?

What is a Cross Currency Swap?

A Cross Currency Swap (CCS) is a financial derivative in which two parties exchange cash flows in different currencies over
2 min read
Jan
31
What is an Interest Rate Swap?

What is an Interest Rate Swap?

An Interest Rate Swap (IRS) is a financial derivative contract between two parties that involves the exchange of interest rate
3 min read
Jan
31
What is Covered / Uncovered Interest Rate Parity? How is it Related to Forwards?

What is Covered / Uncovered Interest Rate Parity? How is it Related to Forwards?

Interest Rate Parity (IRP) is one of the most important theories in finance. It links the interest rates, exchange rates,
2 min read
Jan
31
What is a Foreign Exchange (FX) Swap?

What is a Foreign Exchange (FX) Swap?

A Foreign Exchange (FX) swap is a financial derivative transaction that involves the simultaneous purchase and sale of identical amounts
3 min read