Asset Liability Hedging and Funding Ratios

Have you ever wondered how your business can allocate resources for future expenses in a financially savvy way? Let’s talk about asset liability hedging with bonds! It’s a very well practiced strategy for large institutions and pension funds albeit they also integrate stock portfolios into the mix. Typically the industry will use a combination of […]

Constant Proportion Portfolio Insurance (CPPI)

Perhaps you’ve heard of the Black-Scholes Model? Fischer Black and Myron Scholes first met at the Massachusetts Institute of Technology (MIT) and started a working partnership that would last for 25 years. They are well known for their pinnacle achievement — the Black-Scholes Option Pricing model — which revolutionized investing and led to a Nobel […]