An investing strategy that consists of buying the 10 DJIA stocks with the highest dividend yield at the beginning of the year. The strategy was formulated in 1972 and has proven to be successful. In fact, as Dog of the Dow investors readjust their portfolios each year, it places pressure on the stocks involved. The Dogs of the Dow is an investment strategy popularized by … [Read more...]
Stock-Picking Strategies
Stock-Picking Strategies: Dogs of the Dow The investing strategy which focuses on Dogs of the Dow was popularized by Michael Higgins in his book, "Beating the Dow". The strategy's simplicity is one of its most attractive attributes. The Dogs of the Dow are the 10 of the 30 companies in the Dow Jones Industrial Average (DJIA) with the highest dividend yield. In the Dogs of … [Read more...]
How does Backtesting works ?
Backtesting: Interpreting the Past Backtesting is a key component of effective trading-system development. It is accomplished by reconstructing, with historical data, trades that would have occurred in the past using rules defined by a given strategy. The result offers statistics that can be used to gauge the effectiveness of the strategy. Using this data, traders can … [Read more...]
Collateralized Loan Obligation – CLO
A special purpose vehicle (SPV) with securitization payments in the form of different tranches. Financial institutions back this security with receivables from loans.Banks throughout the world are increasingly utilizing a new asset securitization structure known as a "collateralized loan obligation", or "CLO", to meet their financial objectives. CLOs enable banks to sell … [Read more...]
Collateralized Bond Obligation – CBO
Collateralized debt obligations (CDOs) are a type of structured asset-backed security (ABS) whose value and payments are derived from a portfolio of fixed-income underlying assets. CDOs securities are split into different risk classes, or tranches, whereby "senior" tranches are considered the safest securities. Interest and principal payments are made in order of seniority, so … [Read more...]