Capital relief trades seek attractive returns by offering banks more than economic incentives as synthetic collateralizations boom.

EDI works by adopting many of the same principles institutional investors use for outcomes-based portfolios and adapting them for insurance.

EMs currently account for more than half of the world’s GDP and around two-thirds of GDP growth—that economic share is only expected to rise as EMs are projected to grow faster than developed markets (DMs) in upcoming years.

Downgrade would place the state’s credit rating below investment grade.

The massive move from active to passive allocation has both investors and analysts wondering how it’s going to change the market—and the world.