Download PDF Introduction Swap spreads, which measure the difference between the fixed rate on a swap and the yield on a Treasury bond of the same maturity, have often been negative in recent years, particularly in the wake of the financial crisis of 2008. This phenomenon has puzzled market participants, Read more…
Download PDF Introduction Inflation made a return post pandemic and has been affecting all market participators for 18 months now. In this article, we will dive into the persistence of inflation in the UK specifically and the struggles the UK has had to face trying to cool this red-hot inflation Read more…
Download PDF US The week in the US market was marked by big losses in regional banks stocks, as First Republic failed. The S&P500 lost 0.8% for the week, the Dow Jones was down 1.24% and the Russell 3000 Value was down 1.71%. While the Nasdaq and Russell 3000 Growth Read more…
Introduction Download PDF Repos, or repurchase agreements are the pillars of the financial system, maintaining Read more…
Download PDF Introduction When investors decide to allocate their money in a risky investment, they demand higher expected returns than riskless investments. Thus, the expected return on every risky investment can be seen as the sum of the risk-free rate and a risk premium that compensates investors for bearing the Read more…
Download PDF US The US stock market closed the month of April with the S&P posting monthly gains for the second month in a row, adding 0.87% for the week and 1.5% for the month. All US indexes closed the week in the green, with the only exception of the Read more…
Download PDF US The US stock market closed the third week of April with marginal losses, as the first full week of earnings season ended. The main indexes ranged from -0.42% for the Nasdaq, to +0.58% for the Russell, while the CBOE Volatility Index hit its lowest since January 2022, Read more…
Download PDF Introduction Starting in 1992, a field of financial economics research emerged that has spewed out hundreds of so-called factors that help explain the “cross-section of expected returns”. Harvey and Liu (2019) [6] provide a taxonomy of some 400 different factors which they classify into 6 so-called “common” classes Read more…
Download PDF Introduction We have seen some of the unique trading instruments introduced by the crypto space in our last article, namely perpetual futures and inverse futures and options. Building on our knowledge from another prior article where we introduced cryptocurrencies, basic blockchain infrastructure, as well as some decentralized finance Read more…
Download PDF Introduction Straddling into earnings is a long-volatility trading strategy that consists of entering a long straddle position right before companies’ earnings announcements and closing it after the earnings are released. By buying a straddle before an earnings announcement, investors are betting that the stock will experience a large Read more…
Download PDF US The second week of April was again positive for the US stock market, with the main indexes ranging from +0.29% for the Nasdaq, to +1.52% for the Russell. The S&P 500 and the Nasdaq are now 18% and 25% off the October lows respectively, trusting the ability Read more…
Downlooad PDF Introduction Sweden has been widely regarded as a model for social welfare and economic prosperity, and its housing market, GDP, and inflation rates are key indicators of its economic stability. However, the Swedish housing market has been a source of concern in recent times, with some claiming that Read more…
Download PDF Introduction Transaction costs are a critical component of trading strategies, as they can have a significant impact on returns. Institutional investors need to be able to accurately model transaction costs to make informed decisions in backtesting and optimising their strategies. In this article, we will explore the various Read more…
Download PDF Introduction Global macro strategies, which aim to profit from economic and political trends across markets and asset classes, have been a staple of the investment world for decades. In recent times, these strategies have gained in popularity as investors seek to diversify their portfolios and take advantage of Read more…
Download PDF US The US stock market closed a very positive week with all the main indices gaining more than 3% from last Friday, bringing all indices positive YTD, with the Dow Jones and the Russel 3000 Value just entering positive territory for the year. The S&P and Nasdaq concluded Read more…