High Yield Bond Prices – Are They Exhausted?
... of “junk bonds” is commonly used. While the principles of buy & hold to maturity on bonds has not changed for investors at any level, products accessible to retail investors controlled by the institutional/professional representatives has run aground of late in-line with prices topping out as shown ...
... of “junk bonds” is commonly used. While the principles of buy & hold to maturity on bonds has not changed for investors at any level, products accessible to retail investors controlled by the institutional/professional representatives has run aground of late in-line with prices topping out as shown ...
The world financial crisis and its implications for Ghana
... without regard to when repayment was due. The market became careless as several participants tended to use short term instruments for long term purposes in the misguided belief that the short term rates were going to be prolonged. Furthermore, as the system was awash with all types of credits, and e ...
... without regard to when repayment was due. The market became careless as several participants tended to use short term instruments for long term purposes in the misguided belief that the short term rates were going to be prolonged. Furthermore, as the system was awash with all types of credits, and e ...
A factor portfolio
... We can think of beta as measuring the exposure of a stock or portfolio to marketwide or macroeconomic risk factors. Thus, one interpretation of the SML is that investors are rewarded with a higher expected return for their exposure to macro risk, based on both the sensitivity to that risk (beta) as ...
... We can think of beta as measuring the exposure of a stock or portfolio to marketwide or macroeconomic risk factors. Thus, one interpretation of the SML is that investors are rewarded with a higher expected return for their exposure to macro risk, based on both the sensitivity to that risk (beta) as ...
Open Economy IS/LM Model
... 1. how to extend the IS-LM model to an open economy 2. how to analyze monetary and fiscal policy in an open economy 3. why the Central Bank loses control over the money supply under fixed exchange rates Note: All this is for the short run. ...
... 1. how to extend the IS-LM model to an open economy 2. how to analyze monetary and fiscal policy in an open economy 3. why the Central Bank loses control over the money supply under fixed exchange rates Note: All this is for the short run. ...
Economic Newsletter - OCBC Wing Hang Bank Limited
... “Last month’s Federal Reserve policy meeting was more dovish than expected. Nevertheless, when the Fed will first hike its interest rates, and the pace of rate hikes, remain a key concern for markets which will keep a close watch on upcoming U.S. economic data to assess the outlook for Fed policy. T ...
... “Last month’s Federal Reserve policy meeting was more dovish than expected. Nevertheless, when the Fed will first hike its interest rates, and the pace of rate hikes, remain a key concern for markets which will keep a close watch on upcoming U.S. economic data to assess the outlook for Fed policy. T ...
Chapter 11 Powerpoint
... • Stocks and Bonds – Stocks entitle the buyer to future profits and assets of the corporation. You buy a share of the corporation when you purchase stock. – Stockholders make money through dividends, return on bought stock, or by speculating- buying stock hoping it will increase in price so they ca ...
... • Stocks and Bonds – Stocks entitle the buyer to future profits and assets of the corporation. You buy a share of the corporation when you purchase stock. – Stockholders make money through dividends, return on bought stock, or by speculating- buying stock hoping it will increase in price so they ca ...
Determinants of Power Hedging Mechanisms in Liberalized
... typically dominated by reduced-form (stochastic) modelling approaches [3, 4]. Specifically, we estimate the future price spreads in monthly frequency by autoregressive conditional heteroscedasticity models (ARCH) and study the significance and impacts of energy demand, price of fuels (gas and coal), ...
... typically dominated by reduced-form (stochastic) modelling approaches [3, 4]. Specifically, we estimate the future price spreads in monthly frequency by autoregressive conditional heteroscedasticity models (ARCH) and study the significance and impacts of energy demand, price of fuels (gas and coal), ...
Comments on financial results of the Unipetrol Group
... As far as non-fuel retail is concerned, there was an improvement in margins observed in 3Q 2005 in comparison to first half of 2005 when the margins level remained very low. Profit from operations after 9 months 2005 reached 3 850.73 m CZK level (15.0% increase vs 9 months 2004) and was gained mainl ...
... As far as non-fuel retail is concerned, there was an improvement in margins observed in 3Q 2005 in comparison to first half of 2005 when the margins level remained very low. Profit from operations after 9 months 2005 reached 3 850.73 m CZK level (15.0% increase vs 9 months 2004) and was gained mainl ...
model answers and marking scheme
... Β1-8 = a fixed percentage, set by the Committee, relating the level of required capital to the level of the gross income for each of the eight business lines. (10 arks) QUETSION 2 Model Answer 1. Systematic or Market risk - is associated with systematic factors. The risk can be hedged but cannot be ...
... Β1-8 = a fixed percentage, set by the Committee, relating the level of required capital to the level of the gross income for each of the eight business lines. (10 arks) QUETSION 2 Model Answer 1. Systematic or Market risk - is associated with systematic factors. The risk can be hedged but cannot be ...
Reflections on the Global Financial Crisis
... Before leaving these lists, there is one item that deserves further comment — the role of expansionary US monetary policy. Some have suggested that, rather than simply being a contributing factor, expansionary US monetary policy in the early 2000s was the main cause of the crisis. Expansionary US mo ...
... Before leaving these lists, there is one item that deserves further comment — the role of expansionary US monetary policy. Some have suggested that, rather than simply being a contributing factor, expansionary US monetary policy in the early 2000s was the main cause of the crisis. Expansionary US mo ...
Morning Report June 28, 2017
... the British market, the NBP Winter-17 contract was up 0,56 p/th, closing the day at 45,26 p/th. Long-term contracts received support from a bullish spot market but it is worth mentioning, that supply is still very healthy due to an abundant LNG import to Europe from the Middle East. ...
... the British market, the NBP Winter-17 contract was up 0,56 p/th, closing the day at 45,26 p/th. Long-term contracts received support from a bullish spot market but it is worth mentioning, that supply is still very healthy due to an abundant LNG import to Europe from the Middle East. ...
NBER WORKING PAPER SERIES NEW FRAMEWORK FOR MEASURING AND MANAGING MACROFINANCIAL
... expected return in the distribution. This risk-neutral distribution is the dashed line in Figure 1(b) with expected rate of return r, the risk-free rate. Thus, the “risk-adjusted” probability of default calculated using the “risk-neutral” distribution is larger than the actual probability of default ...
... expected return in the distribution. This risk-neutral distribution is the dashed line in Figure 1(b) with expected rate of return r, the risk-free rate. Thus, the “risk-adjusted” probability of default calculated using the “risk-neutral” distribution is larger than the actual probability of default ...
New Framework for Measuring and Managing Macrofinancial Risk and Financial Stability
... is the “actual” probability of default. The asset-return probability distribution used to value contingent claims is not the “actual” one but the “risk-adjusted” or “risk-neutral” probability distribution, which substitutes the risk-free interest rate for the actual expected return in the distributi ...
... is the “actual” probability of default. The asset-return probability distribution used to value contingent claims is not the “actual” one but the “risk-adjusted” or “risk-neutral” probability distribution, which substitutes the risk-free interest rate for the actual expected return in the distributi ...
Economics and Moral Sentiments: The Case of Moral Hazard
... Segmentation + sand-in-the-wheels to moderate tendencies for swings in market sentiment and thus leverage (reducing efficiency in mainstream sense) Need for non-calculative confidence in money to underpin the financial sector and commercial society ...
... Segmentation + sand-in-the-wheels to moderate tendencies for swings in market sentiment and thus leverage (reducing efficiency in mainstream sense) Need for non-calculative confidence in money to underpin the financial sector and commercial society ...
avoiding ozymandias`s legacy: planning for family
... DIVERSIFICATION Diversification is an important consideration with any portfolio, but it can be a particular problem when the bulk of a family’s assets are tied up in the family business. Brown: Courts and banking institutions always stress diversification because that’s the safest thing from the st ...
... DIVERSIFICATION Diversification is an important consideration with any portfolio, but it can be a particular problem when the bulk of a family’s assets are tied up in the family business. Brown: Courts and banking institutions always stress diversification because that’s the safest thing from the st ...
Financial Instruments - Faculty of Business and Economics
... • Expected outflows of resources • Time value of money • Risk actual outflows might ultimately differ from those expected Hierarchy: If there is a market for a service = Contractor price If not = amount entity would charge another at the future date to undertake service = costs expected + profit ...
... • Expected outflows of resources • Time value of money • Risk actual outflows might ultimately differ from those expected Hierarchy: If there is a market for a service = Contractor price If not = amount entity would charge another at the future date to undertake service = costs expected + profit ...
Journal of Money, Credit, and Banking Washington D.C.
... Fed to support employment following large negative shocks may explain why most FOMC members now judge a PCE inflation rate of 2 percent to be most consistent with the Committee’s dual mandate. Calculations of the effects of the zero bound depend crucially on assumptions regarding the magnitude of d ...
... Fed to support employment following large negative shocks may explain why most FOMC members now judge a PCE inflation rate of 2 percent to be most consistent with the Committee’s dual mandate. Calculations of the effects of the zero bound depend crucially on assumptions regarding the magnitude of d ...
Pricing Rate of Return Guarantees in Regular Premium Unit Linked
... model for Caps (and Swaptions) by providing approximate expressions for the forward bond volatility in a LMM. Building on arguments by Brace et al. (2001) we show that forward bond prices are approximately lognormal in the LMM. It thus seems natural to use the LMM not only for interest rate derivat ...
... model for Caps (and Swaptions) by providing approximate expressions for the forward bond volatility in a LMM. Building on arguments by Brace et al. (2001) we show that forward bond prices are approximately lognormal in the LMM. It thus seems natural to use the LMM not only for interest rate derivat ...