Duration refers to the amount of time before a fixed income product will return the investment (principal and interest) to the investor. The bigger the duration number, the greater the interest-rate risk or reward for bond prices. For example, an investor should generally expect to receive better interest from a 30-year duration bond versus a 10-year, since the investor has to hold the note for longer to receive all interest payments and principal. Continue reading...
The ladder provides the bondholder with a degree of freedom and some liquidity to take part in possibly improved interest rates in the future. The ladder strategy distributes your funds uniformly among bonds with various durations. For example, if you have $10,000, you buy one bond with a duration of one year, one bond with a duration of two years, etc. If the interest rates go up when the shorter-duration bonds expire, you will be able to reinvest this money with a higher coupon rate (of course, keep in mind that your longer-duration bonds would have fallen in price). Continue reading...
A barbell strategy avoids intermediate-term bonds and equally invests in very short term and very long term durations. The barbell strategy divides a sum, for instance $10,000, equally among bonds with short durations and bonds with long durations. If the interest rates will go up sharply, the proceeds from your short-duration bonds will be reinvested into new bonds with much higher coupons. If the interest rates drop sharply, the proceeds from the bonds with shorter durations will be reinvested at a much lower coupon, but on the other hand, your long-duration bonds will rise sharply in price. Continue reading...
Currency warrants are relatively new to the international Forex market. They function like puts or calls, depending on whether it is a purchase warrant or a warrant to sell, but they have longer durations, usually between one and five years until they expire. They can be purchased to take a position on a currency index or on a currency pair. Warrants were originally issued by corporations, giving investors the ability to redeem the warrant like a call option to purchase a stock at a strike price. Continue reading...
A yield curve is an illustration of the current duration-to-yield relationship for bonds of the same credit rating but different durations. As a general rule, the longer the duration of the loan, the more risk you take on (since you don't know what might happen with that corporation in the future), and therefore, you demand a higher reward (i.e., higher coupon). The yield curve for any bond (not just the US Treasury Bonds) changes daily based on many economic and market factors. Continue reading...
Explore the differences between Drawdown in Banking and Drawdown in Trading in our insightful analysis. Banking drawdown focuses on optimizing credit utilization for efficiency and control. In contrast, Trading drawdown assesses risk through magnitude and duration, vital for traders' strategies. Understand these distinct concepts for informed financial decisions. Continue reading...
Commercial Paper is an unsecured short-term loan that a highly rated corporation can issue to finance short-term obligations, like accounts receivable or inventory builds. The high quality paper is typically issued in increments of $100,000 and with a duration of no more than 270 days, which actually makes it a safe investment since the solvency/cash flow of a business is predictable over such a short stretch. Continue reading...
Discover the latest trends in market volatility! Dive into our analysis of how major indices like the S&P 500, NASDAQ-100, and Dow Jones are navigating the recent spikes in uncertainty. Learn what this means for your investments and how to stay ahead in these turbulent times Continue reading...
Tickeron's top-performing AI trading robots are designed to capitalize on these conditions, using advanced algorithms and real-time data analysis to identify profitable opportunities. Learn how these AI robots navigate market trends and optimize trading strategies to enhance portfolio performance. Continue reading...
An Account Hold is similar to the term Account Freeze, as both imply that transactions have been suspended for an account. A client’s financial institution might put a hold on his or her account if the individual is suspected of illegal activity, if the account is overdrawn, or if it is requested by a government entity, such as in a lien by the IRS, among other things. This is slightly different than a “freeze” or “moratorium” on the account. In a freeze, all pending transactions will be canceled and no new requests will be honored. Continue reading...
The past week saw a moderate rise in market volatility as the VIX index increased, while major indexes like SPY, QQQ, DIA, and IWM showed positive growth, reflecting investor optimism. Tickeron’s AI Robots stand out for their ability to enhance trading results through advanced algorithms, identifying trends and signals that help in making informed decisions and managing risks effectively. Continue reading...
Ever wondered about the intricacies of leases and their ripple effects on the economy and society? Dive into our comprehensive guide to uncover the key aspects of leases and their broader implications in the world of real estate. Discover more than just a contract! Continue reading...
Discover how Tickeron's AI-powered trading robots can enhance your trading strategies in a resilient market. Learn about their advanced algorithms, detailed technical analysis, and real-time data insights to help you navigate high-volatility stocks, short bias, and long-only positions. Stay ahead with Tickeron's cutting-edge tools and maximize your trading potential. Continue reading...
Discover how Tickeron's AI robot becomes a beacon of profitability in a week of major stock market downturns. Achieving over 70% in transaction success, it navigates the SP500, NASDAQ 100, and Dow Jones declines with unmatched resilience. Embrace the power of sector rotation strategies, dive into the flexibility of adaptive risk management, and unlock the potential of hedge fund-level analysis. This AI robot is not just surviving the volatile market; it's thriving. Explore how it can transform your swing trading experience. Continue reading...
There will always be more to learn in the investment world: innovation is always happening and the products will change along with market conditions. Bonds are no exception. The bond market is huge — actually larger than the stock market, if you can believe that — and there are literally hundreds of economic, market, and tax-related factors which influence the decisions of which bonds to buy. You must look at the yield curve, duration, rating of the issuer, your own cash flow needs, expected changes in the interest rate environment, changes in the overall health of the economy, tax implications, account in which you're buying bonds, and so forth. Therefore, structuring fixed income accounts is a task which is perhaps better left to professional advisors. Continue reading...
Annuities are primarily designed to pay a substantially similar sum at regular intervals until the annuitant dies. Life insurance companies write these contracts since they are designed as a kind of longevity insurance. A lifetime income annuity, sometimes called a life annuity, is a stream of guaranteed payments for the duration of the annuitant’s life, based on the sum used to purchase the lifetime income and the age of the annuitant at the time of purchase. Life annuities can also be joint-life, meaning the contract will pay an amount to either of two people as long as one is alive. Continue reading...
Discover Tickeron’s cutting-edge Financial Learning Models (FLMs), offering unparalleled algorithmic trading strategies. With dynamic model adaptation, rigorous backtesting, and a focus on undervalued energy stocks, Tickeron's tools empower traders to excel in any market condition. Explore how AI can revolutionize your trading and investment approach. Continue reading...
This article delves into Tickeron’s advanced algorithmic trading solutions, powered by proprietary Financial Learning Models (FLMs) that analyze and adapt to market conditions. It highlights the Swing Trader robot's use of valuation principles and Inverse ETFs to manage risk and maximize profits. Additionally, it covers the importance of multi-level backtesting to ensure robust, consistent performance across various market environments. Continue reading...
Explore the benefits of swing trading and how AI can enhance your strategy. This article delves into the flexible trading strategy of swing trading, which capitalizes on short- to medium-term market movements. Learn how AI-powered trading robots can streamline this process, offering backtested data and risk management tools to improve trading outcomes. Continue reading...