Ju’alah (also transliterated ju’ala or jua’ala/ jua’alah) is a commutative contract in which one the parties (known in Arabic as...
An equity index swap can be hedged, from the perspective of a seller (short), by purchasing index futures. Therefore, if...
The high-water mark (HWM) is an industry standard that is used to determine payment of performance fees (to a hedge...
Since swaps have a dual nature (being two-legged structures), swap hedging can be quite an easy and straightforward endeavor. In...
Ijarah is a financial contract that involves the transfer of the right to the usufruct (manfa’ah) or benefit of a...
Default probability of an underlying deliverable obligation refers to the chance that it would not fulfill during the life of...
Private equity (PE) is a part of the asset management industry where investments involve privately held securities and shares (holdings)-...
Swap assignments are actions taken by a counterparty to a swap (such as an interest rate swap) to effectively terminate...
A fixed-rate loan can be synthetically constructed using interest rate swaps. A debtor with a floating-rate loan can convert his...
A variance swap is a forward contract on annualized variance which pays out at expiration an amount equal to: is...