Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Managing the trade-off between risk and return is the foundation of successful investing. Consequently, financial advisors who are tasked to help investors achieve their financial goals must pay ...

A few examples of credit risk were highlighted during the Financial Crisis: The ratings agencies then issue a letter-grade rating. AAA is the highest: It means the issuer is extremely capable of ...

Since the questionable loans were intended to be sold to investors—shifting the risk away from the lending institution—the mortgage broker and the originating lender experienced financial ...