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Chap7 - John Zietlow
Chap7 - John Zietlow

... companies in each country • Securities included must allow direct holdings of shares by foreign nationals • Index is market-value weighted with a base date of December 31, 1986 = 100 • Results are calculated daily and published the following day in the Financial Times • Geographic subgroups are also ...
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... and credit default index swaps, to obtain investment exposure that the Adviser expects to correlate closely with the Index, or a portion of the Index, and in managing cash flows. The Index is designed to measure the performance of short-term publicly issued U.S. dollar-denominated high yield corpora ...
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Mark-to-market accounting

Mark-to-market or fair value accounting refers to accounting for the ""fair value"" of an asset or liability based on the current market price, or for similar assets and liabilities, or based on another objectively assessed ""fair"" value. Fair value accounting has been a part of Generally Accepted Accounting Principles (GAAP) in the United States since the early 1990s, and is now regarded as the ""gold standard"" in some circles.Mark-to-market accounting can change values on the balance sheet as market conditions change. In contrast, historical cost accounting, based on the past transactions, is simpler, more stable, and easier to perform, but does not represent current market value. It summarizes past transactions instead. Mark-to-market accounting can become volatile if market prices fluctuate greatly or change unpredictably. Buyers and sellers may claim a number of specific instances when this is the case, including inability to value the future income and expenses both accurately and collectively, often due to unreliable information, or over-optimistic or over-pessimistic expectations of cash flow and earnings.
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