EBITDA is a poor proxy for FCFF because it does not incorporate the cash taxes paid. EBITDA also fails to reflect the investment in working capital and fixed capital.
EBITDA is an even worse proxy for FCFE as it does not reflect net borrowings or repayment of debt.
The long position is exposed to potential credit risk in a payer swaption at initiation, but the short position in a payer swaption is not.
…the maximum amount an investor would be willing to pay to an insurer to bear the credit risk of that security.
…reasonably could be expected to compromise their independence and objectivity.
An order placed with a broker to sell a security when it reaches a certain price, below the current price thus stopping your losses.
The initiation of hedges above a certain loss level is an alternative form of a stop-loss limit called drawdown control or portfolio insurance.
A portfolio management rule that establishes a limit on the estimated loss for a given scenario that if exceeded would require corrective action.