Green Economy and ESG Accounting: Growing Sustainability A green economy, or sustainable economy, is a model that fosters growth while protecting natural resources and ecosystems for future generations. ESG (Environmental, Social, and Governance) reporting details how companies disclose sustainability practices. Understanding the Green Economy A green economy advances sustainability by balancing environmental protection, social well-being, and economic growth. Unlike traditio

A swap claim refers to the contractual right to receive net payments under a swap agreement. It is more of a legal concept that describes the enforceable obligation owed by a counterparty during the life of the swap or upon default or early termination. Interest Rate Swap Example: A company with a $100 million floating-rate loan (SOFR + 1.5%) wants stable interest costs, so it enters into a swap in which it pays 4% fixed and receives SOFR. If SOFR for a payment period is 3.8%

A derivative is a financial contract whose value depends on one or more underlying assets. Traders use derivatives to hedge risk, speculate on price movements, or gain leveraged exposure. These instruments allow traders to reach specific market positions at a lower cost and with greater flexibility than using the underlying assets directly. Derivatives fall into two main categories: forward claims and contingent claims. Forward claims obligate both parties to follow the agree

Risk is often viewed as a simple dilemma – win or lose. However, professional managers know risk as a complex structure. Suppose you buy car insurance. You don’t want your car to crash, and if it crashes, the insurance will save you from financial ruin. Similarly, when you invest, there is a risk that the investment may result in a loss. It may be due to price uncertainties, global tariffs, economic policies, and other factors.  That’s where hedging comes in. Hedging is not a

When the word interest rate comes to mind, we usually think of paying an extra amount on a loan or earning returns on savings . Now...

People yearn for power and influence—and often, all it takes is a piece of bond paper, also known as ‘money’. You've probably heard the...