Can Risks Be Reduced in the Derivatives Market
... Promotion of OTC derivatives is also important in terms of balanced growth in the capital market. In U.S. financial markets, direct finance centered on the capital market is growing significantly. For balanced growth of the capital market, the securities, bonds, and derivatives markets should all gr ...
... Promotion of OTC derivatives is also important in terms of balanced growth in the capital market. In U.S. financial markets, direct finance centered on the capital market is growing significantly. For balanced growth of the capital market, the securities, bonds, and derivatives markets should all gr ...
Far Horizon Investments - Penn State Smeal College of Business
... A large expected return, by itself, does not necessarily a good investment make. For instance, stocks, on average, have a higher expected return than bonds. Does that mean everybody should buy stocks and no one should hold bonds? The difference is that bonds are less risky than stocks. All other thi ...
... A large expected return, by itself, does not necessarily a good investment make. For instance, stocks, on average, have a higher expected return than bonds. Does that mean everybody should buy stocks and no one should hold bonds? The difference is that bonds are less risky than stocks. All other thi ...
NARRATOR (DILLY BARLOW): This is the story of a brilliant
... series of equations he created the first complete mathematical model of the markets. He too realised stock prices moved at random and that it was impossible to make exact predictions about them, but then Bachelier said he had found a solution, a wonderful way ...
... series of equations he created the first complete mathematical model of the markets. He too realised stock prices moved at random and that it was impossible to make exact predictions about them, but then Bachelier said he had found a solution, a wonderful way ...
Do hedge funds hedge?
... salient personalities such as George Soros to the forefront. Long and short in any major market they often make leveraged bets in direction of certain macro variables such as interest or exchange rates after having identified mispriced valuations. In general these funds seem to rely more on the intu ...
... salient personalities such as George Soros to the forefront. Long and short in any major market they often make leveraged bets in direction of certain macro variables such as interest or exchange rates after having identified mispriced valuations. In general these funds seem to rely more on the intu ...
Long-Term Capital Management
Long-Term Capital Management L.P. (LTCM) was a hedge fund management firm based in Greenwich, Connecticut that used absolute-return trading strategies combined with high financial leverage. The firm's master hedge fund, Long-Term Capital Portfolio L.P., collapsed in the late 1990s, leading to an agreement on September 23, 1998 among 16 financial institutions — which included Bankers Trust, Barclays, Bear Stearns, Chase Manhattan Bank, Credit Agricole, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Paribas, Salomon Smith Barney, Societe Generale, and UBS — for a $3.6 billion recapitalization (bailout) under the supervision of the Federal Reserve.LTCM was founded in 1994 by John W. Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers. Members of LTCM's board of directors included Myron S. Scholes and Robert C. Merton, who shared the 1997 Nobel Memorial Prize in Economic Sciences for a ""new method to determine the value of derivatives"". Initially successful with annualized return of over 21% (after fees) in its first year, 43% in the second year and 41% in the third year, in 1998 it lost $4.6 billion in less than four months following the 1997 Asian financial crisis and 1998 Russian financial crisis requiring financial intervention by the Federal Reserve, with the fund liquidating and dissolving in early 2000.