Rolling Down the Yield Curve
What is Rolling Down the Yield Curve? Rolling down the yield curve is when investors sell bonds before their maturity date, in order to get a higher profit. This is a fixed income strategy that investors use in a low interest rate environment. The strategy gets its name from the fact that investors are selling...
Bretton Woods Agreement
What is the Bretton Woods Agreement? The Bretton Woods Agreement was reached in a 1944 summit held in New Hampshire, USA on a site by the same name. The agreement was reached by 730 delegates, who were the representatives of the 44 allied nations that attended the summit. The delegates, within the agreement, used the...
Risk-Weighted Assets
What are Risk-Weighted Assets? Risk-weighted assets is a banking term that refers to an asset classification system that is used to determine the minimum capital that banks should keep as a reserve to reduce the risk of insolvency. Banks face the risk of loan borrowers defaulting or investments flatlining, and maintaining a minimum amount of...
2008-2009 Global Financial Crisis
What is the Global Financial Crisis of 2008-2009? The Global Financial Crisis of 2008-2009 refers to the massive financial crisis the world faced from 2008 to 2009. The financial crisis took its toll on individuals and institutions around the globe, with millions of American being deeply impacted. Financial institutions started to sink, many were absorbed...
Federal Funds Rate
What is the Federal Funds Rate? In the United States, the federal funds rate refers to the interest rate that depository institutions (such as banks and credit unions) charge other depository institutions for overnight lending of capital from their reserve balances on an uncollateralized basis. Types of Rates There are two types of federal funds...
