Omega:A Sharper Ratio
... may be “unbiased” with respect to market valuations. But those same valuations, in turn, may well be biased (misaligned) with respect to a counterfactual benchmark in which prices reflect the right signals for economic behaviour.” Borio and Tsatsaronis BIS The Finance Development Centre ...
... may be “unbiased” with respect to market valuations. But those same valuations, in turn, may well be biased (misaligned) with respect to a counterfactual benchmark in which prices reflect the right signals for economic behaviour.” Borio and Tsatsaronis BIS The Finance Development Centre ...
Western Asset Corporate Bond Ladders 1-5 Years
... portfolios in the program may differ, sometimes significantly, from those shown above. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors listed and should not be used as a sole basis to make any investment decisions ...
... portfolios in the program may differ, sometimes significantly, from those shown above. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors listed and should not be used as a sole basis to make any investment decisions ...
Chapter Thirteen: Term Structure of Interest Rates
... 13.5.2 The preferred habitat theory of the term structure The preferred habitat or hedging pressure theory refines the liquidity preference theory to allow for differing preferences among lenders and borrowers with respect to the maturity of the bonds they hold or issue. The main implication of ...
... 13.5.2 The preferred habitat theory of the term structure The preferred habitat or hedging pressure theory refines the liquidity preference theory to allow for differing preferences among lenders and borrowers with respect to the maturity of the bonds they hold or issue. The main implication of ...
12-1
... appropriate returns on non-financial assets • Lessons from capital market history • There is a reward for bearing risk • The greater the potential reward, the greater the risk • This is called the risk-return trade-off ...
... appropriate returns on non-financial assets • Lessons from capital market history • There is a reward for bearing risk • The greater the potential reward, the greater the risk • This is called the risk-return trade-off ...
Intermediate-Term Municipal Bond
... investments carry a certain degree of risk; it is important to review investment objectives, risk tolerance, liquidity needs, tax consequences and any other considerations before choosing an investment style or manager. An investment in any municipal portfolio should be made with an understanding of ...
... investments carry a certain degree of risk; it is important to review investment objectives, risk tolerance, liquidity needs, tax consequences and any other considerations before choosing an investment style or manager. An investment in any municipal portfolio should be made with an understanding of ...
Ch. 12 CF Estimation and Risk Analysis Incremental Incremental
... No, dividends and interest expense should not be included in the analysis. Financing effects have already been taken into account by discounting cash flows at the company’s cost of capital. Deducting interest expense and dividends would be “double counting” financing costs. ...
... No, dividends and interest expense should not be included in the analysis. Financing effects have already been taken into account by discounting cash flows at the company’s cost of capital. Deducting interest expense and dividends would be “double counting” financing costs. ...
Merger Arbitrage & Shareholder Wealth Effects of M&A
... – Target shareholders often prefer to sell immediately and capture most of the takeover premium, rather than wait until deal completion to capture the entire takeover premium. Why? – Arbitrageurs accept deal break risk by buying Target stock, thereby supplying deal break insurance to risk averse Tar ...
... – Target shareholders often prefer to sell immediately and capture most of the takeover premium, rather than wait until deal completion to capture the entire takeover premium. Why? – Arbitrageurs accept deal break risk by buying Target stock, thereby supplying deal break insurance to risk averse Tar ...
Experimental Instructions
... desired and the maximum or "limit" price that they are willing to pay. Similarly, those who wish to sell shares will indicate the number of shares offered and the minimum "limit" price that they are willing to accept. Buy and Sell Orders: The same person may offer to buy and sell shares, but the b ...
... desired and the maximum or "limit" price that they are willing to pay. Similarly, those who wish to sell shares will indicate the number of shares offered and the minimum "limit" price that they are willing to accept. Buy and Sell Orders: The same person may offer to buy and sell shares, but the b ...
Muni Bonds: Off to a Good Start in 2017
... predicting the direction of interest rates historically has been very dif f icult to do. Many have anticipated higher rates f or most of the past eight years, only to be disappointed thus f ar. Yes, it would seem reasonable that rates may be heading higher f rom here (since the hike on December 14 ...
... predicting the direction of interest rates historically has been very dif f icult to do. Many have anticipated higher rates f or most of the past eight years, only to be disappointed thus f ar. Yes, it would seem reasonable that rates may be heading higher f rom here (since the hike on December 14 ...
Key Concepts and Skills
... appropriate returns on non-financial assets • Lessons from capital market history – There is a reward for bearing risk – The greater the risk, the greater the potential reward – This is called the risk-return trade-off ...
... appropriate returns on non-financial assets • Lessons from capital market history – There is a reward for bearing risk – The greater the risk, the greater the potential reward – This is called the risk-return trade-off ...
![Bonds[1] bernadette 2-15-11](http://s1.studyres.com/store/data/008221501_1-fa7b1ba3bcf572926a18d3dd6c220c1d-300x300.png)
Bonds[1] bernadette 2-15-11
... a good advantage, because when the federal taxes come, their returns are free. So they can be a good investment, however it all depends on the buyer personal sitiuation as well. • Corporate bonds are a way for a company to issue bonds as well as stocks. There are three lengths of time a corporate bo ...
... a good advantage, because when the federal taxes come, their returns are free. So they can be a good investment, however it all depends on the buyer personal sitiuation as well. • Corporate bonds are a way for a company to issue bonds as well as stocks. There are three lengths of time a corporate bo ...
The Basics of Risk
... Where is there risk? No potential upside above the required repayment of principal and interest Downside is not getting paid back…default How do you measure the probability of ...
... Where is there risk? No potential upside above the required repayment of principal and interest Downside is not getting paid back…default How do you measure the probability of ...
Exchange-traded Treasury Bonds (TBs) - text version
... What are Exchange-traded Treasury Bonds? ......................................................................... 3 You have a choice of coupon rates and maturity dates ........................................................... 4 Topic 2: Income and price .......................................... ...
... What are Exchange-traded Treasury Bonds? ......................................................................... 3 You have a choice of coupon rates and maturity dates ........................................................... 4 Topic 2: Income and price .......................................... ...
Conventional Wisdom and the Impact of Market Volatility
... are new “demand” then the short positions for the same contracts are new “supply”? • In theory, no limit to the number of futures contracts that can be created at a given price level • Price changes as information changes not necessarily as trader positions change ...
... are new “demand” then the short positions for the same contracts are new “supply”? • In theory, no limit to the number of futures contracts that can be created at a given price level • Price changes as information changes not necessarily as trader positions change ...
Finance&ExcelCh10
... • Efficient Markets = new information is assimilated quickly & correctly into financial asset prices. The correctly priced assets help to efficiently allocate resources in the capitalist system. • Financial Markets are efficient in that when new information becomes available, people buying and selli ...
... • Efficient Markets = new information is assimilated quickly & correctly into financial asset prices. The correctly priced assets help to efficiently allocate resources in the capitalist system. • Financial Markets are efficient in that when new information becomes available, people buying and selli ...
ENTERPRISE RISK MANAGEMENT
... Solution – hedge R&D risk to protect cheap funding - Note transaction costs of FX hedge fairly low - Would this strategy be as attractive for product liability risk where insurance transaction costs are high? ...
... Solution – hedge R&D risk to protect cheap funding - Note transaction costs of FX hedge fairly low - Would this strategy be as attractive for product liability risk where insurance transaction costs are high? ...
PPT
... market than in another: • The arbitrageur can buy at the low price and sell at the high price. • This increases demand in one market and supply in another. • The increase in demand raises price in that market. • The increase in supply lowers price in the other market. • This continues until the pric ...
... market than in another: • The arbitrageur can buy at the low price and sell at the high price. • This increases demand in one market and supply in another. • The increase in demand raises price in that market. • The increase in supply lowers price in the other market. • This continues until the pric ...
Chapter 14 The Money Market
... rates...and long-term rates fall below current shortterm rates if future expected short-term rates are expected to be less than the current level of shortterm rates. Copyright 2005 by Thomson Learning, Inc. ...
... rates...and long-term rates fall below current shortterm rates if future expected short-term rates are expected to be less than the current level of shortterm rates. Copyright 2005 by Thomson Learning, Inc. ...