investment-education

Learn how chooser options work, how they are priced using put-call parity decomposition, and how they compare to straddles. Includes worked examples and calculator.

Lookback options are exotic options whose payoff depends on the realized maximum or minimum price during the options life. Learn about floating strike and fixed strike lookbacks, payoff formulas, pricing considerations, and how they compare to Asian options.

Learn about compound options – options on options. Covers the four types (call on call, call on put, put on call, put on put), the Geske pricing formula, critical stock price S*, and applications in corporate securities and staged investments.

High-yield bonds offer higher income than investment-grade bonds but carry significant default risk. Learn the risk-return tradeoff, historical default rates, how to invest via ETFs or individual bonds, and how high-yield performs in different market environments.

Learn how non-US sovereign bonds like German Bunds, UK Gilts, and Japanese JGBs offer diversification and yield opportunities, including currency risk, credit risk, and access methods.

Learn what liability-driven investing (LDI) is, how cash flow matching differs from immunization, and how to apply LDI principles to retirement income planning.

Complete guide to Duration Times Spread (DTS) — what it is, how to calculate it, why it matters for credit portfolios, and how it differs from spread duration. Based on Fabozzi Chapter 53.

Learn how to decompose bond portfolio returns into yield income, roll return, duration, spread, selection, and currency contributions.

Learn how bond index funds work, why they use sampling instead of full replication, major bond indexes, tracking error sources, and bond ETF mechanics.

Understanding how call provisions affect bond pricing, why option-adjusted spread (OAS) matters, and how effective duration differs from modified duration for bonds with embedded options.