Credit
The annual interest rate paid on a bond’s face value, usually expressed as a percentage.
What is Coupon?
A market that is rising is named after a Bull, while a market that is falling is named after this hibernating animal.
What is a Bear?
This index tracks the 30 largest companies on the Frankfurt Stock Exchange and is considered the "Dow Jones" of Germany.
What is the DAX?
This investor, known for his annual shareholder letters, has led Berkshire Hathaway for decades and is one of the world’s most successful value investors.
Who is Warren Buffett?
The largest cryptocurrency by market cap.
What is Bitcoin?
The ______ is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. It’s a benchmark interest rate for dollar-denominated derivatives and loans that replaced LIBOR
What is Secured Overnight Financing Rate (SOFR)?
Used to describe the Fed's attitude toward interest rates, a "Dovish" official wants low rates, while this predatory bird wants high rates to fight inflation.
What is a Hawk?
On "Black Wednesday" in 1992, George Soros famously "broke" the Bank of England by shorting this currency.
What is the British Pound?
This former Treasury Secretary and Harvard president coined the term “secular stagnation” and is a prominent voice on macroeconomic policy.
Who is Larry Summers?
The Fed's tool for removing liquidity by selling securities from its balance sheet is called _______.
What is Quantitative Tightening or QT?
The U.K. equivalent of bonds is called _____.
What are Gilts?
In the venture capital world, a privately held startup company valued at over $1 billion is named after this mythical horned creature.
What is a Unicorn?
This currency is often considered a "safe haven" during times of turmoil due to the country’s political neutrality and strong banking system.
What is the Swiss Franc (CHF)?
This hedge fund manager famously shorted the U.S. housing market before the 2008 crisis and was portrayed in The Big Short.
Who is Michael Burry?
A 1985 agreement among the G-5 (U.S., France, Germany, Japan, and the U.K.) to devalue the U.S. dollar in relation to other major currencies.
What is the Plaza Accord?
This type of corporate debt includes an embedded equity component and is typically considered hybrid financing.
What is a convertible bond?
Popularized by author Nassim Taleb, this "avian" term refers to a rare, unpredictable event (like the 2008 crash) that has severe consequences.
What is a Black Swan?
This is the global organization, headquartered in Washington D.C., that acts as a "lender of last resort" to countries facing balance of payments crises.
What is the IMF (International Monetary Fund)?
This founder of ARK Invest is known for making bold thematic bets on innovation, including Tesla, genomics, and robotics.
Who is Cathie Wood?
This trading strategy simultaneously buys Treasury securities and sells Treasury futures to profit from mispricings, and contributed to recent Treasury market volatility.
What is the basis trade?
Selling a corporate bond and buying the maturity-matched Treasury is equivalent to buying this credit derivative.
What is a Credit Default Swap (CDS)?
This morbid phrase describes a temporary price recovery in a crashing market, derived from the idea that even a carcass will rebound if dropped from high enough.
What is a "Dead Cat Bounce"?
In 1998, this country defaulted on its domestic debt and declared a moratorium on payments to foreign creditors, leading to the collapse of the hedge fund Long-Term Capital Management (LTCM).
What is Russia?
This investor, a pioneer of factor investing, created the three-factor asset pricing model along with Kenneth French.
Who is Eugene Fama?
This special administrative region in Asia pegged its dollar to the USD in 1983 through a currency board arrangement.
What is Hong Kong?