Sovereign Wealth Funds (SWFs)

The International Monetary Fund (IMF) estimated in September 2007 that sovereign wealth funds, or SWFs, control as much as $3 trillion, and that this tally could jump to $12 trillion by 2012. … As of early 2008, the total assets of SWFs, estimated at nearly $3 trillion, surpass the $1.5 trillion managed by hedge funds worldwide—but [...]

Robert Engle and the ARCH model

In the January 2007 issue of Bloomberg Markets, Peter Carr profiles Robert Engle, co-recipient of the Nobel Prize in Economics in 2003 for his autoregressive conditional heteroskedasticity (ARCH) model [Link]. 
To understand the ARCH model, we first need to know the definition of the terms: heteroskedasticity and volatility clustering. A univariate stochastic process is said to [...]