Derivatives
298 white papers and resources
Risk Library provides derivatives white papers which consider current issues and thinking, market conditions and how derivatives can be used to their best effect. In Business, a derivative is a form of contract where its value is derived from the value of underlying assets. Derivatives can be used to both hedge risk and for speculation. The most common types of derivatives are futures, options, forwards and swaps.
Three key drivers of middle-office outsourcing
This white paper examines the growing trend of middle-office outsourcing among asset and fund managers, driven by operational efficiency and cost control. Insights from Hedgeweek’s May 2023 report show that 60% of hedge funds outsource back-office tasks, with 40% outsourcing middle-office functions…
Risk, portfolio margin, regulation: regtech to the rescue
This Whitepaper addresses the complexity of today’s risk environment for market professionals which can only be fully met with a regtec approach. Cost, competition, technology capability, and regulation influence and drive decision making. Successfully navigating the seemingly incalculable…
A guide to home equity investments: the untapped real estate asset class
Despite near-term headwinds, the US housing market remains one of the most resilient asset classes available to private investors. Home equity investments (HEIs) present an innovative route to residential home equity exposure that is both capital-efficient and scalable, while offering the potential…
Driving a modern operational resilience program
Strengthen your operational resilience processes, meet pertinent regulatory requirements in this space, and enhance business continuity practices with the help of high-performance GRC technology.
Recovering Greeks from sensitivities
This quantitative paper presents a model-independent method for calculating delta, vega and rho based on a comparison of the sensitivities of any derivative payoff with those of its underlying observables. This allows for generic definitions for these Greeks with an intuitive geometric…
Investment management ‘one analytics view’ for credit bonds and ESG risk factors
A Chartis and MSCI research report that examines how firms must integrate ESG risk analytics with multiple other performance or risk analytics in credit bond portfolios to obtain a meaningful, quantitative and comprehensive investment view
Is your SOFR readiness being put to the test? Let's talk about post-transition issues and challenges
In this white paper, five Numerix experts discuss the issues tied to SOFR impacting the market. These include benchmark challenges, curve building, operational challenges, market data quality and availability, system validation and the impact of SOFR on bonds and loans
Finding the investment management ‘one analytics view’
This paper outlines the benefits accruing to buy-side practitioners on the back of generating a single analytics view of their risk and performance metrics across funds, regions and asset classes. And, while that objective might be well understood and clearly defined, actually producing a single,…
Bank balancing: optimising margin and capital in a higher-rate environment
This Risk.net paper, which features leading practitioner insights, assesses the challenges banks are facing in the new higher rate environment and the strategies and tools they are using to optimise margin and capital on their derivatives portfolios.
The importance of data-driven decision-making in Asia-Pacific
Embracing data-driven decision-making enabled by digital technologies is crucial for the success of lending institutions in the Asia-Pacific (Apac) region. Factors such as evolving regulations, technological advancements and changing consumer behaviours are driving continuous transformation in the…