Financial Pipeline Radio The Financial Pipeline

An understanding of the bond market and bond trading is essential to proper investing. How bonds are traded in the market are confusing to most people but they are very important to the economy and the prevailing level of interest rates. Listen to this episode to learn how it happens and why it’s integral.

The one thing constant about preferred shares is their seniority. Preferred shareholders are the senior equity holders in a company and have “preference” in terms of dividend payments and distributions in the case of bankruptcy. Beyond this, preferred shares come in many varieties. Listen to this episode to learn more.

A convertible bond gives the holder the right to “convert” or exchange the par amount of the bond for common shares of the issuer at some fixed ratio during a particular period. Listen to this episode to learn about the different types of convertible bonds and their advantages.

There are two types of derivatives – linear and non-linear. Linear derivatives involve futures, forwards and swaps while non-linear covers most other derivatives. Listen to this episodes to learn more about these two and their differences.

Interest rates are the “price” that lenders charge for lending their money to borrowers. This episode explains the many interest rate components, each reflecting a form of compensation to the lender. Listen to learn more.

A commodity swap helps producers manage their exposure to fluctuations in their products’ prices, and although they can be risky, these swaps are important for energy, chemical and agricultural companies. Listen to this episode for more on types of swaps, users, and how to value them.