Demystifying Exotic Products: Interest Rates, Equities and Foreign Exchange In recent times, derivatives have been inaccurately labelled the financial weapons of mass destruction responsible for the worst financial crisis in recent history. Inherently complex and perilous for the ill-informed investment professional they can however also be gainfully harnessed. This book is a practical guide to the complexities of exotic products written in simple terms based on the premise that derivatives are not homogenous, and not necessarily dangerous. By exploring common themes behind the construction of various structured products in interest rates, equities and foreign exchange, and investigating…. Click Here to Read More
Posts Tagged ‘interest’
Primer on the Interest Rate, Fixed Income and Foreign Exchange Market
August 13th, 2011
kk 
Primer on the Interest Rate, Fixed Income and Foreign Exchange Market “The Federal Reserve Bank intervened today with a coupon pass through the primary dealer network to add needed reserves to the banking system. The added liquidity will help as the banking system is awash in counter-party risk to swaptions and other derivative transactions. The forex market responded with strength in the US dollar on most currency-pairs including Euro, Yen, Sterling and Yuan.” Huh? Wouldn’t it be great to know what the newscaster just said? Dean Lundell’s Primer on the Interest Rate, Fixed Income and Foreign Exchange Market can help by explaining these terms in everyday, lay language. “The…. Click Here to Read More
Might someone with background in currency trading and interest rate tell if following is true?
August 3rd, 2011
kk Question by Mister2-15-2: Might someone with background in currency trading and interest rate tell if following is true? If China increased value of Yen five percent, then would it not take 5% more dollars to pay interest on bonds. Would it be correct to say interest rate increased 5%. Since just stated seems too simple, is there a way to calculate effect of currency change on yield in dollars to state effect equivalent in interest rate? Best answer: Answer by MVD34First, I think you mean Yuan (CNY). Yen is the currency of Japan (JPY). Second, I think you might have confused the relationship between currency depreciation and appreciation. If China increases the value of the YUAN…. Click Here to Read More
What’s the difference between rollover and carry over interest in forex?
April 17th, 2011
kk Question by Peter G: What’s the difference between rollover and carry over interest in forex? Best answer: Answer by Bratwurst ExtruderForex is too risky. Add your own answer in the…. Click Here to Read More
Forex Interest Rate Risk – The Dangers of Forex Trading
December 2nd, 2010
kk Forex Interest Rate Risk – The Dangers of Forex Trading Forex Interest Rate Risk When looking around online at the wealth of information available on forex trading you have probably come across a number of benefits for getting into this market and earning money. However, just like stocks and shares, there are also many risks when it comes to trading forex. These are an inevitable part of the job, so learning about these risks from the beginning will help you to maximise your profits in the long run. If you can find which tools and Forex systems are best to use, which actually benefit you, then you can overcome these risks. Forex Interest Rate Risk In simple terms, the risks…. Click Here to Read More
why is it in the interest of developing countries to have high forex reserves ?
May 15th, 2010
kk (high forex reserves)especially in the event of the financial crisis? also, how does it help a particular country if that country keeps its currency weak against the global currency like the dollar? what are the ways in which a country can artificially make its currency…. Click Here to Read More


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