What is prepayment risk and why is it important
Prepayment risk is the risk that a borrower will repay their loan earlier than expected. This can happen for a number of reasons, such as refinancing to get a lower interest...
The Hubbert Curve and Its Impact on Supply Chains
A symmetric logistic distribution curve is the Hubbert curve. It is a function of production rate and time and often confuses the "normal" gaussian distribution curve. This article will explain the...
What is the average propensity to consume and what factors influence it
The average propensity to consume (APC) is an economic term that refers to the percentage of income that a household spends on goods and services. In other words,...
What are Fibonacci Extensions
Fibonacci Extensions are a technical analysis tool that is used to predict areas of support or resistance. The Fibonacci Extension is based on the Fibonacci Sequence, which is a series of numbers where each number is...
What is a Holdco and what are the benefits of using one
A Holdco, short for holding company, is a company that exists primarily to own other companies. Holdcos can be used for a variety of purposes, such as reducing...
What is volatility skew and why should you care about it
When it comes to options trading, volatility skew is an important concept to understand. In simple terms, volatility skew refers to the difference in implied volatility between puts and...
Applications of Nonlinearity in Engineering and Finance
A nonlinear system is one in which the output is not proportional to the input. Its properties make it an interesting topic for engineers, mathematicians, biologists, and physicists. In fact, nonlinearity is common...
What is Bid shading and how does it work
Bid shading is a type of auction in which the participants bid against each other to purchase an item or service. The winner of the auction is the person who offers...
Grexit Definition
Grexit is a term that is used to describe the potential withdrawal of Greece from the European Union (EU). The term is a combination of the words "Greek" and "exit," and it first gained prominence during the Greek...
What is a Money Purchase Pension Plan (MPPP)?
A money purchase pension plan (MPPP) is a type of retirement savings plan in which contributions are made by an individual or employer on behalf of the employee. The funds in the...