Chapter 14
... • Liquid investments are important, but it is important to aim for a return that will beat inflation • This involves making riskier investments with a more long-term goal • Stock is partial ownership in a company and a good way to seek a profit • Brokerages, both full-service and discount, make it p ...
... • Liquid investments are important, but it is important to aim for a return that will beat inflation • This involves making riskier investments with a more long-term goal • Stock is partial ownership in a company and a good way to seek a profit • Brokerages, both full-service and discount, make it p ...
Lecture 09: Multi-period Model Fixed Income, Futures, Swaps
... The expectations hypothesis • Suppose you have some spare capital that you will not need for 2 years. • You could invest it into 2 year discount bonds, yielding a return rate of y0,2. • Of course, since bonds are continuously traded, you could alternatively invest into 1-year discount bonds, and the ...
... The expectations hypothesis • Suppose you have some spare capital that you will not need for 2 years. • You could invest it into 2 year discount bonds, yielding a return rate of y0,2. • Of course, since bonds are continuously traded, you could alternatively invest into 1-year discount bonds, and the ...
Using Markets to Inform Policy: The Case of the Iraq War
... markets are forced to price the harder-to-assess but potentially much larger general equilibrium and political effects on the global economy. Financial markets do not simply evaluate the cost of war today, but also incorporate the effect of this war on the number and intensity of future conflicts.2 ...
... markets are forced to price the harder-to-assess but potentially much larger general equilibrium and political effects on the global economy. Financial markets do not simply evaluate the cost of war today, but also incorporate the effect of this war on the number and intensity of future conflicts.2 ...
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... negligence. Even in areas where a stricter statutory liability applies, Nykredit shall not be liable for losses due to the breakdown/lack of access to IT systems or damage to the data of these systems which can be attributed to the events below regardless of whether Nykredit itself or an external ...
... negligence. Even in areas where a stricter statutory liability applies, Nykredit shall not be liable for losses due to the breakdown/lack of access to IT systems or damage to the data of these systems which can be attributed to the events below regardless of whether Nykredit itself or an external ...
Multi-Factor Models of Risk for Fixed Income Portfolios
... Micro: Focus on highest return but often ignore incremental risk (stock picking) No Integrated Risk Management Static Approach Using Forecast Returns Relies on historical volatilities and correlations Neglects short horizon risk Ignores risk premium fluctuations Ron Does not take advantage ...
... Micro: Focus on highest return but often ignore incremental risk (stock picking) No Integrated Risk Management Static Approach Using Forecast Returns Relies on historical volatilities and correlations Neglects short horizon risk Ignores risk premium fluctuations Ron Does not take advantage ...
Multi-market Trading and Liquidity: Evidence from Cross
... As of 2013, there are over 500 non-U.S. firms listed on the New York Stock Exchange (NYSE). When a firm’s shares trade simultaneously on multiple exchanges, however, there may be more than one price for the same stock, i.e. identical financial assets trade at different prices in different markets. F ...
... As of 2013, there are over 500 non-U.S. firms listed on the New York Stock Exchange (NYSE). When a firm’s shares trade simultaneously on multiple exchanges, however, there may be more than one price for the same stock, i.e. identical financial assets trade at different prices in different markets. F ...
Margin-based Asset Pricing and Deviations from the Law of One Price
... (2010), and Prieto (2010).2 The specification of the margin requirement is key to our results. First, we make the realistic assumption that both long and short positions use capital; in contrast, a linear constraint, as often assumed in the literature, implies that shorting frees up capital. While b ...
... (2010), and Prieto (2010).2 The specification of the margin requirement is key to our results. First, we make the realistic assumption that both long and short positions use capital; in contrast, a linear constraint, as often assumed in the literature, implies that shorting frees up capital. While b ...
Pricing Rate of Return Guarantees in Regular Premium Unit Linked
... UL context can therefore be considered as some kind of stock option. Many insurance companies have given guarantees on UL contracts in the beginning of the nineties, not realizing the risk attached to this product characteristic. With the current bearish stock markets and Fair Value calculations at ...
... UL context can therefore be considered as some kind of stock option. Many insurance companies have given guarantees on UL contracts in the beginning of the nineties, not realizing the risk attached to this product characteristic. With the current bearish stock markets and Fair Value calculations at ...
Chapter 10 Forwards and Futures
... Futures contracts are designed to address these limitations. Definition: A futures contract is an exchange-traded, standardized, forward-like contract that is marked to the market daily. Futures contract can be used to establish a long (or short) position in the underlying commodity/asset. Features o ...
... Futures contracts are designed to address these limitations. Definition: A futures contract is an exchange-traded, standardized, forward-like contract that is marked to the market daily. Futures contract can be used to establish a long (or short) position in the underlying commodity/asset. Features o ...
2015 Glossary of Senior Living Finance Terms
... Advance Refunding: a refinancing, or refunding, of bonds prior to the call date where the refunded bonds remain outstanding for a period of more than 90 days after the issuance of the refunding issue. The proceeds of the new refunding issue are placed in an escrow account and generally invested in T ...
... Advance Refunding: a refinancing, or refunding, of bonds prior to the call date where the refunded bonds remain outstanding for a period of more than 90 days after the issuance of the refunding issue. The proceeds of the new refunding issue are placed in an escrow account and generally invested in T ...
Average Credit Quality in Bond Portfolios
... Morningstar groups bond funds into ultra short-term, short-term, intermediate-term and long-term categories based on the average effective duration reported by mutual funds. Investors compare funds within these categories and Morningstar assesses relative performance within these effective duration ...
... Morningstar groups bond funds into ultra short-term, short-term, intermediate-term and long-term categories based on the average effective duration reported by mutual funds. Investors compare funds within these categories and Morningstar assesses relative performance within these effective duration ...
Convertible Bonds Primer
... raise debt at a significantly high interest cost. By issuing convertibles, they are able to both harness the volatility of their capital structure and reduce the interest payments on their debt. In most cases, the higher volatility translates into a lower coupon. This form of financing is also appro ...
... raise debt at a significantly high interest cost. By issuing convertibles, they are able to both harness the volatility of their capital structure and reduce the interest payments on their debt. In most cases, the higher volatility translates into a lower coupon. This form of financing is also appro ...