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How to Use Swaps to Hedge Interest Rate and Inflation Risk in Muni Bond Portfolios
For investors looking to diversify their portfolios with potentially lower risk, municipal (muni) bonds are becoming an increasingly attractive investment option. In this blog, we explain how muni bond investors can use swaps to hedge their exposure to interest rate fluctuations and inflation expectations, which have been the main drivers of muni bond market performance in 2024.
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FINCAD Names Nora Irene Ghartey as Winner of its 2020 Women in Finance Scholarship
Drumroll please… It is my greatest pleasure to announce that we have selected a winner for this year’s Women in Finance Scholarship! Nora Irene Ghartey, a native of Ghana and exceptionally talented young woman, will use the award money to pursue a MSc degree in Financial Mathematics at the London School of Economics and Political Sciences (LSE). At FINCAD, we are committed to helping talented
August 5, 2020
Blog
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The Beauty of Simplifying Hedge Accounting
When it comes to hedge accounting, firms face common challenges that add unnecessary complexity to their operations. Chief among these are relying on spreadsheets and manual processes for tasks such as hedging interest rate risk or tracking cash flow volatility. But while spreadsheet usage is a typical practice for hedge accounting, it is a time-consuming and massively error-prone one. In today’s
July 28, 2020
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End of IBOR
Gearing Up for the End of IBOR
The move to alternative risk-free rates (RFRs) is upon us. While we do not know an exact date for when Libor will be formally discontinued, we believe it’s coming –and relatively soon. Firms are now in a phase of needing to adapt their technology and valuation and risk processes to meet this new frontier. From EONIA to €STR To foster liquidity one of the first steps involves transitioning the
July 9, 2020
Blog
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Python vs. Excel: Which is better for data analysis?
Throughout the finance industry, we’ve seen a surge in Python use for development of data analysis. Many firms are even eliminating reliance on spreadsheets in areas like modeling and risk reporting. They are instead building out new analyses with Python—which are more functional and robust than Excel workbooks ever were. What’s Driving the Move to Python? The volume of information that firms work
June 18, 2020
Blog
Prepare-For-Impact
Prepare for the Impacts of Monetary Expansion by Leveraging Inflation
The outlook for economic impacts of the coronavirus pandemic remains uncertain. But we are seeing the US Fed and many other central banks taking drastic steps to stem deflation and stimulate lending. US interest-rates are now almost zero, and modern expansionist monetary policy is in full effect with quantitative easing and the use of newly printed money for intervention in the open markets. In
June 9, 2020
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