What is the Federal Reserve Board’s market risk capital rule?

The Federal Reserve Board’s market risk capital rule (MRR) sets forth the capital requirements for banking organizations with substantial trading activities. The MRR rule requires banks to adjust their capital requirements based on the market risks of their trading positions. The rule applies to banks worldwide with total trading activity of more than 10% of total assets or banks with assets …

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A+/A1

What Is A+/A1? A+ /A1 refers to two ratings issued to long-term bonds and bond issuers by the competing credit rating agencies Standard & Poor’s (S&P) and Moody’s respectively. S&P uses A+, and Moody’s uses A1, but both indicate pretty much the same thing. Both A+ and A1 sit squarely in the middle of the investment-grade category of their credit …

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Top 15 people to always be wary of, those who are a little too dodgy

Much like red flags and other signs that you should not date this person, there are certain clues that you may need to distance yourself from certain individuals. After summoning a team of scientists highly equipped with scientific devices (like thermometers and bunsen burners), we compiled a list of all the suspicious behaviors that deserve your attention. Because we never …

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What Are Bond Ratings? Definition, Effect on Pricing and Agencies

What is a Bond Rating? A bond rating is a way to measure the creditworthiness of a bond, which corresponds to the cost of borrowing for an issuer. These ratings typically assign a letter grade to bonds that indicates their credit quality. Private independent rating services such as Standard & Poor’s, Moody’s Investors Serviceand Fitch Ratings Inc. evaluate a bond …

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Top 8 Fastest Falls of Fortune in History

Having money is good. Having a lot of money is good, good. But keeping it… It’s better. Realizing that you’ve squandered your entire fortune must hurt. But waking up one billionaire morning, then going to bed the same night ruined… Wow. Very happy to have no risk of experiencing such an upheaval. 1. Sam Bankman-Fried, Founder of FTX FTX is …

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Baby Bond

What Is a Baby Bond? A baby bond is a fixed income security that is issued in small-dollar denominations, with a by value of less than $1,000. The small denominations enhance the attraction of baby bonds to average retail investors. Key Takeaways A baby bond is one that has a face value of less than $1,000. These small-denomination bonds are …

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Top 10 things that are forbidden in the metro, we learn things

Every year, we discover new forbidden things and we continue to live in denial. In the Paris metro, there are plenty of rules that no one really respects; we doubt that they exist but we act as if we did not know in order to live more peacefully. The problem is that we are less clever when a fine falls …

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3 signs that it’s time to sell your bonds

Investing can be tricky, even when it comes to so-called “safe” investments such as bonds. When a company issues a bond, the money they receive in return is a loan and must be repaid over time. Many investors choose bonds as long-term investments because they are supposed to guarantee returns on investment in addition to yearly interest income. However, if you’re …

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