Net Interest Margin Explained: How Banks Make Money
Net interest margin is the spread banks earn between asset yields and funding costs. Q1 2026 industry NIM hit 3.31%. Here’s how it works.
Market Education
Learn how stocks, bonds and capital markets work. Explore plain-English explanations, worked examples and charts, then follow related coverage to connect market concepts with current events. Find your way around ECMSource.
Sortino Ratio Explained: Why Downside Risk Beats Sharpe
The Sortino ratio measures returns per unit of downside risk, not total volatility. Here is the formula, a worked example, and when to use it.
Fed Stress Test 2026: What June 24 Will Tell Investors
The Fed releases 2026 stress test results on June 24. With buffers frozen through 2027, the numbers matter — but not the way they used to.
FedEx Q4 Preview: First Earnings After the Freight Spinoff
FedEx reports Q4 FY26 on June 23 — the first print without FedEx Freight. Street sees $5.80 EPS, down 4.5% YoY. What investors are watching.
Value at Risk Explained: How Banks Measure Tail Risk
Value at Risk turns a portfolio’s potential loss into one number. Here is how the three methods work, why VaR misses the tail, and what regulators use instead.
Cash Conversion Cycle Explained: DSO, DIO, DPO
The cash conversion cycle measures how many days a company’s cash is tied up in operations. Here is the formula, a worked example, and why negative CCC is the holy grail of working capital.
Maximum Drawdown Explained: The Real Risk No Average Captures
Maximum drawdown is the worst peak-to-trough loss a portfolio has taken – the single number that captures the pain volatility hides.
DuPont Analysis Explained: 3-Step and 5-Step ROE
DuPont analysis splits return on equity into margin, asset turnover, and leverage so you can see whether a high ROE comes from operating skill, capital efficiency, or just borrowing.
CAPE Ratio Explained: When Stocks Are Truly Expensive
Shiller PE sits near 41, second only to the 1999 peak. What CAPE measures, when it works, when it misleads, with verified historical data.
Bank Capital Ratios Explained: CET1, Tier 1, Tier 2
What CET1, Tier 1, and Tier 2 capital ratios mean, the Basel III minimums, buffers, and why bank capital is back in the headlines.