Questions tagged [finance]
Finance describes the management, creation and study of money, banking, credit, investments, assets and liabilities that make up financial systems, as well as the study of those financial instruments.
414 questions
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Why socialist economies have financial issues despite central planning
Socialist economies like USSR often faced financial problems and needed Foreign capital. How did that happen despite they with central planning controlling everything they needed ?
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Does the idea of immunization change with a bond fund vs individual bonds?
Traditional duration matching theory holds that the duration of the bond is the point at which, the capital gain is exactly matched by the loss in reinvestment of coupons at a lower interest rate and ...
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Question About Bond Assets with Intrinsic Risk
I'm delving into the world of financial assets and learned about the trichotomy of bonds, stocks, and options.
Government Bonds - Fixed Time Value
Stocks - Time Value + Risk Premium
Options - Risk ...
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Why do definitions of yield to maturity differ between financial institutions and academia?
In Money, Banking, and Financial Markets (p.137, Cecchetti and Schoenholtz, 2015) yield to maturity is defined as the internal interest rate of a bond. Which is identical to the interest rate used to ...
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What are the tangible benefits of NCGTC's credit guarantee schemes especially CGS-NPF for beneficiaries farmers, MSMEs and India's broader economy?
I'm researching the impact of government-backed financial initiatives in India, particularly those aimed at enhancing credit flow to underserved sectors. The National Credit Guarantee Trustee Company (...
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What are the economic implications of government-backed credit guarantees for low-income housing?
I’ve been reading about India’s housing loan guarantee scheme (CRGFTLIH), where the government promises to cover a large part of the lender’s loss if a low-income borrower defaults. The idea is to ...
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What makes a credit guarantee scheme actually work for small farmers—beyond just offering coverage?
I recently learned how public credit guarantee schemes aim to reduce risk in agricultural lending by covering part of the default. But on paper, most schemes look similar—some offer 75%, others 85%. ...
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"Fictitious Capital" Across Industries
In Chapter 9 of Limits to Capital, David Harvey provides the following example for how "credit money" facilitates the fixed capital circulation and formation of consumption fund.
We noted, ...
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Introducing uncertainty into NPV calculation
I am struggling to find the best way to introduce uncertainty into the comparison of two net present values (NPVs).
The following setting: I would like to compare two annuity plans and find the ...
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General aNNUITY
A general annuity is an annuity where the payment interval is different from the interest compounding period. This means that while the payments are made regularly, the frequency of these payments ...
user55607
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How to determine cumulative net income or dividends?
In a company's financials, if
RE = retained earnings
NI = cumulative net income
D = cumulative dividends paid
then RE = NI - D. Does anybody know how to extract ...
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Determinants of long term interest rates
Can you pls explain why long-term nominal interest rates should be around of the level of nominal potential GDP? What would be the macroeconomic forces behind it?
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What is the reason behind the growing Secured Overnight Financing Volume?
I was looking at the NY FED's page (https://www.newyorkfed.org/markets/reference-rates/sofr) and saw the following chart:
Question: Is there a straightforward explanation as to what drives the ...
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Effects of an anti-trust tax
Suppose a corporate tax.
It is levied on publicly traded companies.
It is calculated as a percentage of the market capitalization of the company.
The market capitalization in question is the average ...
user49571
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What's a good textbook reference for interest rate models / term structure modelling?
There is a huge literature modelling the yield curve. For instance, the affine term structure literature, both in continuous and in discrete time, has many models with different factors, models that ...
