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The term structure of interest rates, also known as the yield curve, is a graphical representation that shows the relationship between the yields of bonds with different maturities (the time until the bond matures) at a specific point in time. This relationship can be visualized as a curve, with the

The real interest rate tells you the actual return or cost of borrowing after accounting for inflation. It provides insight into the true purchasing power gained or lost from an investment or loan. Specifically, the real interest rate = nominal interest rate - inflation rate (see also the Simplified Fisher Equation)

The map below shows the OPEC member countries and their latest annual crude oil production (31 December 2023). OPEC Member Country Oil Production (b/d) 2023 Algeria 1,160,000 Congo 253,000 Equatorial Guinea 79,000 Gabon 220,000 Iraq 4,375,000 Iran 4,084,000 Kuwait 2,

Lagging economic indicators are statistics that typically change after the economy as a whole does. These indicators confirm economic trends that have already been predicted by leading indicators or shown by coincident indicators. Some examples of lagging economic indicators include: * Average Duration of Unemployment (inverted): This indicator reflects the average

What is Global Macro Global macro is an investment strategy used primarily by hedge funds to profit from broad economic and political shifts across the globe. These funds employ a top-down investment approach, starting with an evaluation of the overall global economic landscape and then drilling down by country, region,

A balance of payments crisis occurs when a country is unable to pay for essential imports or service its external debt payments due to a shortage of foreign exchange reserves. The key characteristics of a balance of payments crisis are: * Rapidly falling foreign exchange reserves or reserves being maintained only

Intrigued by the potential for profiting from a rise in interest rates or a decline in bond prices? Shorting US Treasuries offers a way to do just that. However, it's important to understand the different strategies available and the risks involved before diving in. This article explores various

The Consumer Price Index (CPI) has a significant impact on the stock market. It is a widely followed economic indicator that measures the average change in prices of a basket of goods and services consumed by households. The CPI is used to track inflation, which is a critical factor in

US equities refer to stocks and equity securities traded on US stock exchanges. The main US equities markets are: * The New York Stock Exchange (NYSE), which operates five equities exchanges using the NYSE Pillar trading technology platform. The NYSE offers multiple trading models to provide a superior trading environment. * Cboe

Global macro is a trading strategy where investors capitalize on broad economic trends and events impacting markets worldwide. This approach involves analyzing macroeconomic factors – like interest rates, inflation, and economic growth – to make informed decisions on diverse assets, including currencies, bonds, commodities, and equity indices. One prominent example of a