How Do Investors Use Duration and Convexity to Manage Fixed Income Risk?
With coupon bonds, investors rely on a metric known as “duration” to measure a bond’s price sensitivity to changes in interest rates. Because a coupon bond makes a series of payments over its lifetime, fixed-income investors need ways to measure the average maturity of a bond’s promised cash flow, to serve as a summary statistic of the bond’s…
Avengers: Endgame is here. In the final installment of the 22-film Avengers series from Walt Disney Company’s (DIS) Marvel Studios, superheroes look to defeat a mighty figure known as Thanos who acquired all the infinity stones and culled half of all the living things in the universe by snapping his fingers.
Thanos believed this was necessary to make the universe more balanced and prosperous. In Avengers: Infinity…
Caterpillar Inc. (CAT) is set to report quarterly earnings before the opening bell on Wednesday, April 24, after the stock confirmed a “golden cross” on its daily chart on April 15 and as its weekly chart becomes overbought. Shares of the heavy equipment manufacturer closed Monday, April 22, at $142.38, up 12.4% year to date and in bull market territory at 27.1% above the Oct. 29 low of $112.06. The stock is also in correction…
The reporting season for 1Q 2019 is underway, and revenue is becoming a bigger source of concern than profits. Only 42% of companies thus far have beaten revenue estimates, dramatically lower than the 73% that topped consensus earnings forecasts. Those numbers are from analysis by Bank of America Merrill Lynch after about a quarter of S&P 500 companies reported by the end of last week, per a detailed story in MarketWatch.
StockTwits, a social media network for investors and traders with 2 million registered members, plans to launch its own free stock trading app during the summer of 2019, capitalizing on its engaged user base. CEO Ian Rosen says they were approved by the Financial Industry Regulatory Authority (FINRA) in late February, and are currently testing the app with employees, friends, and family.
Rosen says, “Our customer base is…
The FTSE 100 is an index that includes the top 100 companies from the London Stock Exchange. They are ranked by their market capitalization. However, market cap may not be an investor’s only interest in a stock.
Many of the stocks in this index pay dividends. Those seeking income from stocks will want to know what kinds of dividend yields are available. FTSE stock dividend yields range from approximately 1% to 9%. We have…
Before applying for a credit card, ask yourself this important question: How likely am I to be approved? There are two reasons why that question matters. First, understanding the odds of being approved for a credit card can save you time. You can narrow your search for a card to the ones for which you’re most likely to qualify and avoid the ones for which you don’t. Second, limiting your credit card applications can minimize…
Twitter, Inc. (TWTR) kept alive its streak of alternating between good and bad earnings announcements this quarter when it announced better-than-expected numbers this morning before the opening bell. The company beat revenue expectations by $11.84 million and earnings expectations by $0.22 per share – reporting numbers of $787 million and $0.37 per share, respectively.
This news, coupled with surprisingly…
Although there are several ways to measure the volatility of a given security, analysts typically look at historical volatility. Historical volatility is a measure of past performance. Because it allows for a more long-term assessment of risk, historical volatility is widely used by analysts and traders in the creation of investing strategies. (Want to improve your Excel skills? Take Investopedia Academy’s Excel Course.)
Learn the dynamics of investing in an S&P 500 fund.