In recent years, with the public availability of AI tools, more people have become aware of how closely the inner workings of ...

Graph algorithms constitute a fundamental area of computational research that focuses on the analysis and manipulation of graph structures, which represent systems of interconnected entities.

It turns out that all tax-exempt munis exhibit negative convexity near par, even if they are not callable. The driver of this phenomenon is the so-called de minimis tax effect.

As illustrated in the convexity graph earlier, there is exposure at both tail ends in the form of call and put options on SPX, the S&P 500 index.