Chapter 10 - Blackwell Publishing
... Since the financing cost was 1.9%, an arbitrage profit was earned. Chapter 10 ...
... Since the financing cost was 1.9%, an arbitrage profit was earned. Chapter 10 ...
RTF
... The bonds shall bear such date or dates, shall be serial or term bonds, shall mature in such amounts and at such times, not exceeding 40 years from their date or dates, and shall bear interest at such rate or rates, which may vary from time to time as hereinafter authorized, and which may be represe ...
... The bonds shall bear such date or dates, shall be serial or term bonds, shall mature in such amounts and at such times, not exceeding 40 years from their date or dates, and shall bear interest at such rate or rates, which may vary from time to time as hereinafter authorized, and which may be represe ...
Chapter 4
... the bond supply curve to the right, resulting in a higher interest rate. In 2012, bond interest rates remained low despite record deficits. When the government runs a deficit, households may begin to increasing saving in anticipation for future tax payments to finance the deficit. Due to increased h ...
... the bond supply curve to the right, resulting in a higher interest rate. In 2012, bond interest rates remained low despite record deficits. When the government runs a deficit, households may begin to increasing saving in anticipation for future tax payments to finance the deficit. Due to increased h ...
SRT510 Business Case Studies
... an investment is higher risk, a “risk premium” is often added to the discount rate to compensate for the risk (e.g. that the investment will not meet projected cash flows). This means that the discount rate for a higher risk investment will typically be higher. ...
... an investment is higher risk, a “risk premium” is often added to the discount rate to compensate for the risk (e.g. that the investment will not meet projected cash flows). This means that the discount rate for a higher risk investment will typically be higher. ...
The Case for Investing in High Yield Municipal
... Yield Municipal benchmark has a duration of 10.5 years as of 12/31/16, which is 6.0 years longer than the Barclays U.S. Corporate High Yield benchmark. Historically this relationship has held as well. As such, high yield municipal bonds are much more sensitive to changes in interest rates relative t ...
... Yield Municipal benchmark has a duration of 10.5 years as of 12/31/16, which is 6.0 years longer than the Barclays U.S. Corporate High Yield benchmark. Historically this relationship has held as well. As such, high yield municipal bonds are much more sensitive to changes in interest rates relative t ...
Oaktree High Yield Bond Fund
... Derivatives Risk. Derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. The Fund typically uses derivatives as part of a strategy designed to reduce exposure to other risks, such as currency risk. The Fund’s use of ...
... Derivatives Risk. Derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. The Fund typically uses derivatives as part of a strategy designed to reduce exposure to other risks, such as currency risk. The Fund’s use of ...
The relevance and the limits of the Arrow-Lind Theorem
... increase in demand for electricity in a specific isolated region, the value of the project is positive only if the regional economy will indeed be growing in the future. This also yields a large beta. The same argument applies for fast train lines. Arrow and Lind (1970) also justify the recommendati ...
... increase in demand for electricity in a specific isolated region, the value of the project is positive only if the regional economy will indeed be growing in the future. This also yields a large beta. The same argument applies for fast train lines. Arrow and Lind (1970) also justify the recommendati ...
inflation-protected bonds: a look at the new i bond series
... bonds. I bonds thus provide “downside” protection to their holders. The downside to these bonds is that holders forego opportunities to have price gains and high returns if market interest rates were unexpectedly to fall. In addition, the yields are on average lower than can be obtained from other t ...
... bonds. I bonds thus provide “downside” protection to their holders. The downside to these bonds is that holders forego opportunities to have price gains and high returns if market interest rates were unexpectedly to fall. In addition, the yields are on average lower than can be obtained from other t ...
What central banks can learn about default risk from credit markets
... probabilities can be extracted from credit spreads. The assessment of market functioning. The dispersion of credit spreads on equally rated individual names or sectors is used as one of several indicators of the efficient functioning of credit markets. For example, a widening of spreads of A-rated b ...
... probabilities can be extracted from credit spreads. The assessment of market functioning. The dispersion of credit spreads on equally rated individual names or sectors is used as one of several indicators of the efficient functioning of credit markets. For example, a widening of spreads of A-rated b ...
Emerging Market Repo
... borrowers to freely deal with those securities may be in question in some countries. The borrower's rights upon the insolvency of a local counterparty may be determined by the local jurisdiction, which may disregard rights provided in the PSA/ISMA (GMRA) such as termination and netting of transactio ...
... borrowers to freely deal with those securities may be in question in some countries. The borrower's rights upon the insolvency of a local counterparty may be determined by the local jurisdiction, which may disregard rights provided in the PSA/ISMA (GMRA) such as termination and netting of transactio ...
Week 6 Slides
... contract which moves in opposite direction Identify options with price or interest rate which moves as close as possible with the price or interest rate exposure but again imperfect correlation results in basis risk Options only hedge against adverse outcome so they are similar to insurance and ...
... contract which moves in opposite direction Identify options with price or interest rate which moves as close as possible with the price or interest rate exposure but again imperfect correlation results in basis risk Options only hedge against adverse outcome so they are similar to insurance and ...
Title Is Times New Roman 28 Pt., Line Spacing .9 Lines
... The author(s) (if any authors are noted) principally responsible for the preparation of this material receive compensation based upon various factors, including quality and accuracy of their work, firm revenues (including trading and capital markets revenues), client feedback and competitive factors ...
... The author(s) (if any authors are noted) principally responsible for the preparation of this material receive compensation based upon various factors, including quality and accuracy of their work, firm revenues (including trading and capital markets revenues), client feedback and competitive factors ...
Lesson 4 - uwcentre
... have been falling relative to their 30-year averages. •If interest rates on these securities rose back to their historical averages, holders of bonds would suffer losses. •Not surprisingly, many financial advisers have warned investors that buying bonds could be risky. •In this lesson, we study how ...
... have been falling relative to their 30-year averages. •If interest rates on these securities rose back to their historical averages, holders of bonds would suffer losses. •Not surprisingly, many financial advisers have warned investors that buying bonds could be risky. •In this lesson, we study how ...
Determining Interest Rates
... have been falling relative to their 30-year averages. •If interest rates on these securities rose back to their historical averages, holders of bonds would suffer losses. •Not surprisingly, many financial advisers have warned investors that buying bonds could be risky. •In this lesson, we study how ...
... have been falling relative to their 30-year averages. •If interest rates on these securities rose back to their historical averages, holders of bonds would suffer losses. •Not surprisingly, many financial advisers have warned investors that buying bonds could be risky. •In this lesson, we study how ...