adminUnderstanding Barbell Investing: Definition, Strategy Overview, and Practical Application
What Is a Barbell Strategy in Investment? A barbell strategy is a specialized investment technique commonly used in fixed income portfolios. The strategy involves splitting the portfolio into two halves:…
Understanding Debt Securities: Definitions, Varieties, and Investment Strategies
Understanding Debt Securities Debt securities are financial instruments enabling the buying and selling of debt between parties. They come with defined terms like the amount borrowed (notional amount), interest rate,…
Understanding Fixed Income Forwards: Definition and Functionality
What Is a Fixed Income Forward? A fixed income forward involves a contract to buy or sell fixed-income securities at a predetermined price on a future date. This financial instrument…
Understanding the 2016 Money Market Reform: 4 Key Aspects to Consider
The Impact of the SEC’s Money Market Fund Reforms On October 14, 2016, the Security and Exchange Commission (SEC) implemented significant reforms for money market funds, marking a crucial shift…
Understanding the Bank Discount Rate, its Functionality, and an Illustrative Example
What Is the Bank Discount Rate? The bank discount rate signifies the interest rate associated with short-term money market instruments such as commercial paper and Treasury bills. This rate is…
Understanding Retail Repurchase Agreements: Definition, Mechanics, and Illustrative Example
What Is a Retail Repurchase Agreement? A retail repurchase agreement, also known as a “retail repo agreement,” offers investors an attractive alternative to traditional savings accounts. In this financial product,…
Bankrate Monitor Index can be restated as: The Index monitored by Bankrate.
What Is the Bankrate Monitor Index? The Bankrate Monitor Index serves as a comprehensive gauge of interest rates offered on various depository accounts at banks and credit unions throughout the…
Revamping the wording of the sentence: Funding Facility for Money Market Investors (FFMMI)
What Was the Money Market Investor Funding Facility? The Money Market Investor Funding Facility (MMIFF) was established by the Federal Reserve in 2008 in response to the financial crisis to…
Introduction to Bump-Up Certificate Of Deposit (Bump-Up CD)
What Is a Bump-Up Certificate of Deposit? A bump-up certificate of deposit, commonly referred to as a bump-up CD, is a unique savings certificate that offers the holder the opportunity…
Understanding the Promotional Certificate of Deposit (CD) Rate: A Comprehensive Guide
What Is a Promotional Certificate of Deposit (CD) Rate? A promotional certificate of deposit (CD) rate, also known as a bonus CD rate, is a special interest rate offered by…
