DERIVATIVES

January 26, 2017 by Harbourfront Technologies 1 comment

Convertible Bond Pricing-Derivative Valuation Example

A convertible bond (or preferred share) is a hybrid security, part debt and part equity. Its valuation is derived from both the level of interest rates and the price of the underlying equity. Several convertible bond pricing approaches are available to value these complex hybrid securities such as Binomial Tree, Partial Differential Equation and Monte…

January 12, 2017 by Harbourfront Technologies 0 comments

Will IFRS 9 Help Commodity Firms Better Manage Risks?

Less than a year from now, the banks will have to introduce the IFRS 9 Impairment, and it will have a substantial financial impact on them. However, it is not just banks that will be affected by this new accounting standard, non-financial corporations, for example commodity firms, will be impacted as well. The Treasurers Wiki…