by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Post-Modern Portfolio Theory?A system for the distribution of portfolio investments based on assets versus the risk of negative returns, also known to as downside risk. This defined as Post-Modern Portfolio Theory. In the post-modern portfolio theory, the risk...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Fed Model?The Fed model is a metric that compares the earning yields of the S&P 500 with the yield generated by a long-term (10 years) U.S Treasury bonds to determine whether bond rates are set appropriately.How Does the Fed Model Work?The Fed model...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Consensus Estimate?A consensus estimate is an estimate of a company based on the aggregate estimates of analysts about the stocks of securities of a firm. When analysts give estimates of a company’s earnings per share sales and revenue, either...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Constant Maturity?Constant maturity refers to a representation of maturity determined by the yield of various Treasury securities that have different maturity periods. The Federal Reserve Board uses constant maturity to generate an index for the average yield...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Assignment of Trade?An assignment of trade (AOT) is a tri-party agreement in the trade of mortgage-backed securities (MBS) in which a party in the initial agreement assigns his obligation to a third party. An assigned trade occurs when a counterparty in a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Capital Gains Distribution?Capital gains distribution refers to an investment payout distributed to investors by the fund’s manager. Capital gains are made of profits realized when securities or stocks in a fund or investment are sold by the manager....
