ETN or ETF?

Exchange traded notes (ETN) are structured investments linked to market instruments such as market Indices, Commodity, Currency, Emerging Markets, Fixed Income, Leveraged products and Strategies. Introduced on June 12, 2006 by Barclays Bank, the first ETNs named iPath, was issued as unsecured debt which means such notes don’t own anything while ETFs represent a stake…

Global Industry Classification Standard (GICS)

Global Industry Classification Standard (GICS) was developed by Morgan Stanley Capital International (MSCI) and S&P to enhance research and investment process and to classify a company according to its principal business activity. GICS consists of 10 sectors, 24 industry groups. There are also industries and sub-industries introduced in GICS methodology to fine tune all business…

Instantaneous Forward Rates

Note: Instantaneous forward rate calculations can be downloaded here. The main focus of this article is to clarify the difference between spot, forward and instantaneous forward rates, define the meaning of the latter and outline its application. The main feature of interest rates as a class is that they do not represent any specific financial…

I.RVA of credit instruments: Introduction

Relative value analysis (RVA) is an important subject for the debt market, as it allows comparing different FI and MM instruments (bonds, CDS, swaps, etc.) with one another and making respective trading decisions. In this series of articles you will find the description of its purpose and application. Why is this value analysis called “relative”?…