What Is the Weighted Average Coupon (WAC)? The weighted average coupon (WAC) is a measurement of the rate of return on a pool of mortgages that is sold to investors as a mortgage-backed security (MBS). The underlying mortgages are repaid at different lengths of time, so the WAC represents its return at the time it…
What Is Default Probability? Default probability is the likelihood over a specified period, usually one year, that a borrower will not be able to make scheduled repayments. It can be applied to a variety of different risk management or credit analysis scenarios. Also called the probability of default (PD), it depends, not only on the…
Many registered investment advisors (RIA) at one time or another have considered striking out on their own to form an independent financial advisory firm. But those attributes that make one a successful advisor at a larger organization don’t always translate into the skill sets that are needed to run an independent business. Still, with a…
The Association for Financial Counseling and Planning Education has created a new professional credential for financial planners. The Accredited Financial Counselor (AFC) provides financial advisors with practical training in all aspects of personal finance. However, this credential is not a clone of other certifications, such as the Certified Financial Planner® or the Chartered Life Underwriter….
Investment analysts conduct research, create financial models, and produce analytical reports and recommendations concerning specific types of stocks, bonds, or other investment securities. Investment analysts work for many types of firms in the securities industry, including brokerages, banks, money management firms, hedge funds, and pension funds. Professionals in this field are also known as securities…
Investment Banking vs. Wealth Management: An Overview Wealth management and investment banking are two of the most popular career choices within the financial sector. While there is a significant amount of overlap and interaction between these fields, the two jobs are distinctly different. An investment banker mainly offers financial services and advice to corporate entities,…
A portfolio manager is a person who is responsible for making investment decisions using money that other investors place under his control. A portfolio manager implements his or her strategy on behalf of investors and manages the day-to-day operations of portfolio trading. If you want to pursue a career as a portfolio manager, there are…
For justified reasons or not, certain events in history have been called for boycott by unhappy people who, once again, for reasons that we can find valid or not. But it sometimes happens that the boycott does not take and that in the end it becomes a bitter failure, which we will try to see…
What Is the NASDAQ Global Select Market Composite? The NASDAQ Global Select Market Composite is a market capitalization-weighted index made up of U.S.-based and international stocks that represent the NASDAQ Global Select Market. As of August 2020, the NASDAQ Global Select Market Composite consisted of more than 1,400 stocks that meet Nasdaq’s strict financial and…