Offering employees pizza or praise can be more effective than cash bonuses in increasing productivity, according to an experiment by Dan Ariely at an Intel factory in Israel. The group promised pizza saw a 6.7% increase in productivity, while the group promised compliments came second with a 6.6% increase. In contrast, the group offered cash […]
Companion bonds, also known as support or companion tranches, help reduce prepayment risk by assimilating excess principal payments during high prepayment speeds and deferring receipt during low speeds. They are commonly used in planned amortization class and CMO tranches. Brokers can explain their relationship to investors. Companion bonds are sometimes known as support or companion […]
TIPS bonds offer low-risk investment opportunities with low interest rates, protected from inflation by the US government. Interest rates are locked in for the life of the bond, but principal amounts increase during inflation and decrease during deflation. Semiannual distribution payments are taxable, but TIPS bonds can be actively sold at any time. TIPS bonds […]
