What Is a Debt/Equity Swap?

A debt/equity swap is a type of financial transaction in which a company swaps its debt for equity in another company. This can be done to reduce the amount of debt the company has on its balance sheet, or to raise capital for the company. There are a few different types of debt/equity swaps that … Read more

Effective Duration.

Effective duration is a measure of a bond’s price sensitivity to changes in interest rates. It is used to estimate the price change of a bond in response to a interest rate change. The higher the effective duration, the more sensitive the bond’s price is to changes in interest rates. The effective duration of a … Read more