Tom Alston

What are derivatives and how are they used?

What are derivatives and how are they used?

Warren Buffet has described them as “financial weapons of mass destruction”. Robert Kiyosaki said that the subprime Morgage Backed Security (MBS) disaster was a result of them “exploding in financial institutions such as AIG and Lehman Brothers”. So, what exactly are derivatives? A derivative is a financial security with a

By Tom Alston
Tech sell-off leads to market slump

Tech sell-off leads to market slump

Turbulence in the global financial markets, particularly in the technology sector, saw equity sell offs, oil prices tumble, and dollar swings this week as concerns over the global economy intensified as investors fear growing trade tensions and weak corporate earnings. FAANG stocks, which had previously powered the recent post crisis

By Tom Alston
Investment banks relish in hawkish environment

Investment banks relish in hawkish environment

It is a well-known fact that when interest rates are hiked, investment banks increase their profitability due to their massive cash holdings. Increasing the interest rates directly increases the yield on the cash it holds, and the proceeds go directly into the income statement. Furthermore, interest rate hikes tend to

By Tom Alston