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The duration represents the sensitivity of the price of a financial instrument to current interest rates. Since at the rolling date the price will be equal to the face value no matter what happens to interest rates today (the interest rate will be reset at a future date), the rolling does not add any price sensitivity to an instantaneous interest rate shock. ...

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You can assume two periods economy: calling them today and tomorrow is a convenient representation that is easy to relate to. Today is certain, tomorrow is not- the number of states is known, and the economy will be in one of these states tomorrow. A generic state is represented by s. $pc(s)$ is the today price of a security that will pay one unit if state s ...

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In the dot.com era the Internet was considered a-winner-takes-it-all market, new tech start-ups (like Netscape, Amazon.com and the famous Pets.com) was measured by how much the capital they where able to chew through, the logic being that the more they spend the more aggressive they were (at least in the investors' eyes), conquering this new market known as ...

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"Primary calendar" in this context most likely means the schedule of emissions on the primary market. If the primary calendar is strong, there are lots of emissions both in number and size.

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Without looking at the Airbus article, cash flow and income do not have to move together. Assume AirBus is a very simple company, all they did was sell one plane which cost them 100 million to build and they sold it for 120 million. With no other transactions, AirBus would have a Net Income of 20 million but its cash flow can be negative 100 because it has ...

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The document refers to an increase in the top tax rate in the UK. And I think the comment below Table 5.1 answers your question: As shown, there was a significant increase in dividend income in 2009-10 followed by a corresponding fall in 2010-11. This is thought to be the main source of the forestalling behaviour as it is the main source of income ...

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You are a bank (or a bank like institution) that makes money from a portfolio of assets (such as loans) which are financed by liabilities (such as deposits or interbank loans). The Net Interest Income is how much you make on your assets after subtracting your cost of financing those assets, so we have 35-21 = 14. Your Net [Interest] Income Margin is how ...

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"Burn rate" is a measure of "spend rate" relative to cash on hand. So if you have $10 million dollars, and you spend$1 million dollars a month, you will "burn through" your cash in ten months, at which time your company will either "take off," get new financing, or go under. Strategies that rely on "burn rate" are risky ones. Nevertheless, they are ...

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