When using a fixed-income arbitrage strategy, the investor assumes opposing positions in the market to take advantage of small price discrepancies while limiting interest rate risk. Fixed-income arbitrage is amarket-neutral strategy, meaning that it is designed to profit regardless of whether the ove...
1. Predictable Income The rates on fixed annuities are derived from theyieldthat the life insurance company generates from its investment portfolio, which is invested primarily in high-quality corporate andgovernment bonds. The insurance company is then responsible for paying whateverrate it has promise...
and the government can break that trust, suspend that redeemability, print a ton of paper money, and then re-peg that paper money such that each unit of paper currency is redeemable for a much smaller amount of gold, before people realize what is happening to their savings...
Earnings before interest, taxes, and amortization (EBITA) is a measure of company profitability used by investors. It is helpful for comparison of one company to another in the same line of business. In some cases, it also can provide a more accurate view of the company's real performance ...
A forward spread is the point difference between the spot and forward prices of a security. To create a forward spread, a person...
Profit-&-loss statements, also referred to as p&l statements, arefinancial reports that indicate a company's ability to manage expenses and income according to the Corporate Finance Institute. ... A CPA audited statement is classified as certified, according to Investopedia. ...
A baby bond is a fixed income security that is issued in small-dollar denominations, with a par value of less than $1,000. The small denominations enhance the attraction of baby bonds to average retail investors.小额债券是一种以小面值发行的固定收入证券，票面价值低于1000美元。小面额债券增强了...
News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children. ...
Jessica is a personal finance expert who’s been creating online content since 2009. Before transitioning to full-time freelance writing, she was on the editorial team at Investopedia and The Balance. Her writing has been published on Yahoo Finance, Investopedia, TIME, and Newsweek. SEE FULL BIO...
Investopedia explainsOperating Cash Flow - OCF Operating cash flow is the cash that a company generates through running its business. It's arguably a better measure of a business's profits than earnings because a company can show positive net earnings (on the income statement) and still not be...