What Are Fed Funds Futures? Fed funds futures are financial futures contracts based on the federal funds rate and traded on the Chicago Mercantile Exchange (CME) operated by CME Group Inc. (CME). The federal funds rate is the rate banks charge each other for overnight loans of reserves on deposit with the Federal Reserve. The
What Is the Fed Model? The Fed model is a market timing tool for determining whether the U.S. stock market is fairly-valued. The model is based on an equation that compares the earnings yield of the S&P 500 with the yield on 10-year U.S. Treasury bonds. The model was never officially endorsed by the Federal Reserve
What is Fed Speak? Fed speak is a phrase used to describe former Federal Reserve Board Chair Alan Greenspan’s tendency to make wordy statements with little substance. Many analysts felt that Greenspan’s ambiguous “Fed speak” was an intentional strategy used to prevent the markets from overreacting to his remarks. The assumed intent of Fed speak
What Is a Fee-Based Investment? A fee-based investment is a product that is recommended by a financial planner whose compensation includes a sales commission paid by the investment provider in addition to the fees paid by the client. Fee-based investments may be offered by investment companies, banks, or other financial institutions. A fee-only investment is
What is Feedback-Rule Policy? Feedback-Rule Policy is an action taken by a government body with the goal of restoring equilibrium to an economy that has been destabilized. It may be fiscal policy enacted by a government or monetary policy imposed by a central bank authority. Key Takeaways Feedback-rule policy is an action undertaken by a
What Is a Feeder Fund? A feeder fund is one of several sub-funds that put all of their investment capital into an overarching umbrella fund, known as a master fund, for which a single investment advisor handles all portfolio investments and trading. This two-tiered investment structure of a feeder fund and a master fund is
What Is a Feed-In Tariff (FIT)? A feed-in tariff is a policy tool designed to promote investment in renewable energy sources. This usually means promising small-scale producers of the energy—such as solar or wind energy—an above-market price for what they deliver to the grid. Key Takeaways A feed-in tariff (FIT) is a policy designed to
What Is a Feasibility Study? A feasibility study is a detailed analysis that considers all of the critical aspects of a proposed project in order to determine the likelihood of it succeeding. Success in business may be defined primarily by return on investment, meaning that the project will generate enough profit to justify the investment.
What Is the Foreign Exchange Dealers Association of India (FEDAI)? The Foreign Exchange Dealers Association of India (FEDAI) is an association of commercial banks that specializes in the foreign exchange (forex) markets in India. These institutions are also called Authorised Dealers or ADs. Created in 1958 and incorporated under Indian law, Section 25 of The
What Is the Fed Balance Sheet? The Fed balance sheet is a statement listing the assets and liabilities of the Federal Reserve System. Details of the Fed’s balance sheet are disclosed by the Fed in a weekly report called “Factors Affecting Reserve Balances.” Key Takeaways The Fed balance sheet is a listing of the Federal Reserve’s
