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Investment Portfolio
Investment Portfolio

... • The primary objective is to achieve the required investment yield, while striving for a diversified portfolio and taking prudent levels of risk. • “Required investment yield” is defined to be the portfolio yield that, along with expected results in mortality, lapse, expense, and other key margin s ...
PowerPoint Slides
PowerPoint Slides

... Relationship between yields to maturity and maturity Yield curve - a graph of the yields on bonds relative to the number of years to maturity – Usually Treasury Bonds – Have to be similar risk or other factors would be influencing yields ...
Fact Sheet:SPDR DoubleLine Short Duration Total
Fact Sheet:SPDR DoubleLine Short Duration Total

... value of a mutual fund's and ETFs total assets, minus liabilities, divided by the number of shares outstanding. Intraday NAV is calculated and published throughout the trading day. It is based on the last trade price of each holding listed in the basket used for creation and redemption including est ...
Presented by
Presented by

... Reproduction or use of these materials for any other purpose or by or for any individuals is strictly prohibited. The information contained in this presentation has been obtained from sources that AAM believes to be reliable, but AAM does not represent or warrant that it is accurate or complete. The ...
World Credit Asset
World Credit Asset

... The World Credit Asset Composite includes all discretionary accounts with market values greater than $75 million managed by Loomis Sayles that seek to maximize risk-adjusted returns by allocating across the credit spectrum based on macro analysis of economic regimes and the global credit cycle. Acce ...
February 9, 2004
February 9, 2004

... portfolio assets, maturities, purchases, called bonds, and realized income for the quarter. Also included were graphic illustrations depicting the portfolio’s asset composition, maturity analysis, and a comparison of market yields. Mr. Yacobozzi further indicated that all investments made during the ...
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... under 40 basis points currently. Due to relatively low yields offered by this sector, Agency holdings continued to contract slightly over the quarter and are at the low end of target. Given the uncertainty of the economic and interest rate environment, the Bank does not believe it is the right time ...
top fund fortissimo - (c)
top fund fortissimo - (c)

... An evaluation of a corporate or municipal bond's relative safety from an investment standpoint. Basically, it scrutinizes the issuer's ability to repay principal and make interest payments. Sharpe ratio A measure for calculating risk-adjusted return. It indicates the return earned in excess of the r ...
The bright side of higher rates
The bright side of higher rates

... Interest rates on U.S. government bonds have increased with market expectations of a Federal Reserve rate hike in December. Rising rates on longer-term bonds reflect optimism about the U.S. economy — growth is accelerating and consumer prices show signs of increasing following an extended period of ...
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

... 4. In what way the financial investment is different from general investment? 5. On what basis strong form of efficient market hypothesis differ from the weak form? 6. Explain any two key factors involved in firm specific analysis. 7. What are the features of contingent investment? 8. What do mean b ...
High Yield Bond Prices – Are They Exhausted?
High Yield Bond Prices – Are They Exhausted?

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Handout: Supply and Demand
Handout: Supply and Demand

... Decision tree: Is the factor that changed a demand side or supply-side factor? If it is a demand-side factor, see the demand side key below. If it is a supply-side factor, see the supply-side key below. Demand Side Key: Change in price of product Change in: prices of related goods income wealth tast ...
Bond Basics: Yield Curve Strategies. Craig Sullivan, CFA, CAIA
Bond Basics: Yield Curve Strategies. Craig Sullivan, CFA, CAIA

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Yield Curves - Bank of England
Yield Curves - Bank of England

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YEARNING FOR YIELD
YEARNING FOR YIELD

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Best Credit Data Bond Analytics Calculation Methodology Created by
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... 1. Evaluation of an interest-sensitive fixed-income security (in other words, a security whose future redemption date and payment stream are influenced by interest rates through the presence of an implicit embedded option). For example, is a 50 bp OAS appropriate for an A-rated asset? 2. Facilitates ...
CO 5401 - Loyola College
CO 5401 - Loyola College

... Calculate the standard deviation of the expected return and comment on the risk of the securities. 17. As an investor you expect a interest rate of 18% p.a. M/s. Mothiram Investment Ltd., advertises that it will pay a lump sum of Rs.50000 at the end of 6 years, if you deposit annually Rs. 5000. Calc ...
Interest rate_Ch05
Interest rate_Ch05

... Default Risk Premium (DRP) Difference between the interest rate on a U. S. Treasury bond and a corporate bond of equal maturity and marketability Compensates for risk that a borrower will default on a loan ...
The Yield Curve
The Yield Curve

... What information can we get from the yield curve? ...
Seeing the positive - The Business Times
Seeing the positive - The Business Times

... that Asian fixed income offers good long-term riskadjusted return potential. ii) With beta returns expected to be lower than before, investors will also need to be more active and agile. This makes it important to find an active manager that is focused on both generating alpha and minimising downside ...
Dividend Strategies Drive Returns
Dividend Strategies Drive Returns

... between stock prices and underlying fundamental values. However, our strategy does not require that we take advantage of market volatility in order to realize good long-term results. Our investment team is relentlessly focused on the attributes that we believe over time drive share holder value: hig ...
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Chapter 3

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Measuring Risk - Minds on the Markets
Measuring Risk - Minds on the Markets

... 2. If we were to plot a variety of possible outcomes for what an investment will be worth, what shape should we expect? 3. What do we call the variation from the mean that covers about 2/3rds of the outcomes. 4. When a stock’s price history is more volatile than normal, what does this mean? 5. What ...
It is not appropriate to discount the cash flows of a bond by the yield
It is not appropriate to discount the cash flows of a bond by the yield

... timing and size of cash flows. Differences in the timing and size of cash flows will produce differences in duration, convexity and tax liability. Each of these has an impact on bond value. To appropriately price a bond it is necessary to change the perspective. Through Chapter 4 in the text a bond ...
Contrarian-Investing-SHU
Contrarian-Investing-SHU

... • MBA in finance: NYU Stern School of Business • Stamford CFA Society, Past President • Deutsche Bank/Scudder: United Technologies, Rockwell, Mayo Clinic • Instructor: NY Institute of Finance ...
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Fixed-income attribution

Fixed-income attribution refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio include the overall level of the yield curve, the slope of the yield curve, and the credit spreads of the bonds in the portfolio. A portfolio manager may hold firm views on the ways in which these factors will change in the near future, so in three separate risk decisions he positions the assets in the portfolio to take advantage of the expected forthcoming market movements. If all views subsequently prove to be correct, then each decision will generate a profit. If one view is wrong, it will generate a loss, but the effect of the other bets may compensate. The overall performance will then be the sum of the performance contributions from each source of risk. Attribution is therefore an extremely useful tool in verifying a fund manager’s claims to possessing particular investment skills. If a fund is marketed as being interest-rate neutral while providing consistent returns from superior credit research, then an attribution report will confirm this claim. Conversely, if the attribution report shows that this same manager is making non-zero returns from interest rate movements, then his exposure to interest rate risk is clearly not zero and his investment process clearly differs from his stated position.Fixed-income attribution therefore provides a much deeper level of information than is available from a simple portfolio performance report. Typically, such a report only shows returns at an aggregated level, and provides no feedback as to where the investor’s true skills lie. For these reasons, fixed-income attribution is rapidly growing in importance in the investment industry.
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