What Is a Systematic Manager? A systematic manager adjusts a portfolio’s long- and short-term positions on a particular security according to price trends. Systematic managers allow a security to remain part of the portfolio as long as the price of that security remains above a predetermined level. Key Takeaways A systematic manager is a type
What Is Systematic Risk? Systematic risk refers to the risk inherent to the entire market or market segment. Systematic risk, also known as “undiversifiable risk,” “volatility” or “market risk,” affects the overall market, not just a particular stock or industry. Key Takeaways Systematic risk is inherent to the market as a whole, reflecting the impact
What Is Systematic Sampling? Systematic sampling is a type of probability sampling method in which sample members from a larger population are selected according to a random starting point but with a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population size by the desired sample size. Despite the
What Is Survival Analysis? Survival analysis, also known as time-to-event analysis, is a branch of statistics that studies the amount of time it takes before a particular event of interest occurs. Insurance companies use survival analysis to predict the death of the insured and estimate other important factors such as policy cancellations, non-renewals, and how long it takes
What is Survivor Bond? A survivor bond is a type of fixed-income security in which future coupon payouts are based on the percentage of a defined population group who are alive on the stated payment dates. Key Takeaways Survivor bond is a a type of fixed-income security in which future coupon payouts are based on
What is Survivorship Bias Risk? Survivorship bias risk is the chance of an investor making a misguided investment decision based on published investment fund return data that reflects only successful funds rather than all funds. Key Takeaways Survivorship bias risk is the risk that the reported returns for investment funds is overly optimistic because failed
What Is Sushi Bond? The colloquial term sushi bond is used to describe a bond issued by a Japanese company in a market outside of Japan and denominated in a currency other than the yen. The most common issuing currency is the U.S. dollar. Key Takeaways A sushi bond, denominated in a currency other than
What Is a Suspended Loss? A suspended loss is a capital loss that cannot be realized in a given tax year due to passive activity limitations. These losses are, therefore, “suspended” until they can be netted against passive income in a future tax year. Suspended losses are incurred as a result of passive activities, and
The term “suspense account” can have several different meanings, depending on the context. In the business world generally, a suspense account is a section of a company’s financial books where it can record ambiguous entries that need further analysis to determine their proper classification. In mortgage servicing, the servicer can use a suspense account to
What Is Sustainability? In the broadest sense, sustainability refers to the ability to maintain or support a process continuously over time. In business and policy contexts, sustainability seeks to prevent the depletion of natural or physical resources, so that they will remain available for the long term. Key Takeaways Sustainability is ability to maintain or
