CIP is a cornerstone principle in international finance. First described by John Maynard Keynes in 1923, the idea that FX forward rates must reflect interest rate differentials between currencies has long been considered one of the best tested theories in financial economics. If a market participant is willing to swap a higher yielding currency for a lower yielding currency over some time horizon, he must be compensated for the difference in yield via an adjusted forward price. Otherwise an arbitrage opportunity arises until prices and interest rates align again.
The financial crisis and direct aftermath revealed cracks in the armour of CIP. In a market environment with scarce liquidity and high credit risks in forward markets, dealers were constrained in their ability to profit from what was previously regarded as an almost risk-free arbi¬trage trade. But as conditions in financial markets slowly normalised after the crisis, CIP deviations remained and cross-currency basis never returned to its pre-crisis levels. After narrowing for some time, it started to widen again across most G10 pairs since approximately 2015. Increasingly, FX forward markets seemingly do not reflect what would be expected given the observed interest rate differentials. Figure 1 illustrates these dynamics by depicting the magnitude of G10 cross-currency basis over time for an exemplary three-month tenor.
The Relation between Balance of Payment and Foreign Exchange Ratemohamedosman370
The Definition of the (BOP)
The (BOP) structure
The Surplus and Deficit of (BOP)
Purposes of Official Reserve
The nominal and real exchange rate
The exchange rate regimes
Bloomberg Intelligence: US Financials Outlook 2015Bloomberg LP
Regulation will continue to be top of mind for U.S. financial institutions in 2015 as new standards around capital requirements and overall funding structure may impact returns. Investors will also be watching long term interest rates as rising rates will be key to improving revenue growth.
" Managing working capital, financing the business, assessing
control of foreign Exchange and political risks and evaluating foreign
direct Investment."
Meaning of Term Structure of Interest Rates
Significance of Term Structure of Interest Rates
What is Yield Curve?
A spot rate and a forward Rate
Theories of Term Structure of Interest Rates
De los 15 mercados objeto de estudio, sólo Sudáfrica y Turquía muestran debilidad en los tres factores de riesgo.
Cinco mercados, Brasil, Chile, Hungría, México y Polonia, se muestran vulnerables en dos de los tres factores de riesgo.
Ocho mercados, Hong Kong, India, Indonesia, Israel, Malasia, Rumanía, Rusia y Corea del Sur, muestran salvedades en uno de los tres factores de riesgo.
The Relation between Balance of Payment and Foreign Exchange Ratemohamedosman370
The Definition of the (BOP)
The (BOP) structure
The Surplus and Deficit of (BOP)
Purposes of Official Reserve
The nominal and real exchange rate
The exchange rate regimes
Bloomberg Intelligence: US Financials Outlook 2015Bloomberg LP
Regulation will continue to be top of mind for U.S. financial institutions in 2015 as new standards around capital requirements and overall funding structure may impact returns. Investors will also be watching long term interest rates as rising rates will be key to improving revenue growth.
" Managing working capital, financing the business, assessing
control of foreign Exchange and political risks and evaluating foreign
direct Investment."
Meaning of Term Structure of Interest Rates
Significance of Term Structure of Interest Rates
What is Yield Curve?
A spot rate and a forward Rate
Theories of Term Structure of Interest Rates
De los 15 mercados objeto de estudio, sólo Sudáfrica y Turquía muestran debilidad en los tres factores de riesgo.
Cinco mercados, Brasil, Chile, Hungría, México y Polonia, se muestran vulnerables en dos de los tres factores de riesgo.
Ocho mercados, Hong Kong, India, Indonesia, Israel, Malasia, Rumanía, Rusia y Corea del Sur, muestran salvedades en uno de los tres factores de riesgo.
RMBS Trading Desk Strategy Understanding Mortgage Dollar R.docxhealdkathaleen
RMBS Trading Desk Strategy
Understanding Mortgage Dollar Rolls October 2, 2006
Sharad Chaudhary
212.583.8199
[email protected]
RMBS Trading Desk Strategy
Ohmsatya Ravi
212.933.2006
[email protected]
Qumber Hassan
212.933.3308
[email protected]
Sunil Yadav
212.847.6817
[email protected]
Ankur Mehta
212.933.2950
[email protected]
RMBS Trading Desk Modeling
ChunNip Lee
212.583.8040
[email protected]
Marat Rvachev
212.847.6632
[email protected]
Vipul Jain
212.933.3309
[email protected]
Dollar rolls serve as the primary channel for mortgage securities borrowing and lending
in the MBS TBA market, and as such they play a critical role in providing liquidity to
the market. The borrowing rate associated with a dollar roll provides significant
information on technicals in the MBS market. A background in the conventions and
calculations associated with dollar rolls is thus critical to understanding relative value
in the MBS market. The primary goal of this primer is to provide this background.
Functionally speaking, dollar roll transactions are a form of securities lending and are
closest in spirit to repurchase agreements (repos). In a typical repo, a lender agrees to
sell securities to a buyer in return for cash. At the termination of the transaction, the
securities are resold at a predetermined price plus an interest payment. A dollar roll is
analogous to a repurchase transaction except that the party borrowing the securities has
the flexibility of returning “substantially similar” securities, instead of the same ones.
In addition to providing financing opportunities for mortgage pass-through positions
and enhancing liquidity in the TBA market, dollar rolls also serve other needs. Dollar
rolls are used to obtain collateral for CMO deals and TBA transactions, to avoid
operational issues associated with taking delivery of mortgage pools, to hedge specified
pool positions, and to express a view on prepayment speeds.
As financing transactions, dollar rolls can offer attractive borrowing rates and a
considerable portion of this primer is devoted to explaining how to calculate the
implied financing rate associated with a particular dollar roll. The sensitivity of roll
pricing to different factors such as prepayment speeds and reinvestment rates is also
explored.
Historical data suggest that dollar rolls can offer financing advantages of as much as 15
bps to 100 bps versus 1-month LIBOR. This advantage should not be construed as a
“free lunch”, however, since it comes with risks attached. These risks include being
redelivered collateral with inferior prepayment characteristics relative to the original
securities that were delivered and prepayment risk. Credit risk and liquidity risk play a
relatively minor part in dollar rolls.
Our primer concludes with a “real life” example of how dollar rolls trade in practice.
We review the history of roll levels on FNMA 6s and comment on t ...
Question 1Response 1Development inside and out effects t.docxaudeleypearl
Question 1:
Response 1:
Development inside and out effects the entire country's economy. It impacts the managing body, regardless the clearly irrelevant subtleties in the average person's dependably life. Both a conditions and clear deferred results of how the economy is getting along, swelling has the two its fans and spoilers. Distinctive envisions that particular degrees of swelling are helpful for a prospering economy, yet that progressively critical rates raise concerns. It can degrade the money basically and, at logically lamentable, has been a key part to subsidences.
Swelling, as referenced, is the rate a worth ascensions, and fundamentally how much the dollar is worth at a given moment concerning checking. The idea behind swelling being an impact for good in the economy is that a reasonable enough rate can nudge financial movement without debasing the money so much that it ends up being basically vain (Kohn, 2006).
Swelling can in like manner falter from asset for asset. Subordinate upon the season, the expense of gas could go up independently from with everything considered headway as it routinely does as summer moves close. In reality, there is even a term - focus improvement - for swelling that parts in everything except for sustenance and imperativeness (gas and oil), as these regions have separate factors that add to them. There are a wide degree of sorts of swelling, subordinate upon what remarkable is being viewed comparatively as what the development rate truly is by all accounts. For example, what happens if the swelling rate is well over the Fed's normal goal? At a higher rate, yet still in the single digits, that is known as walking swelling. It is seen as concerning yet sensible (Ball, 2006).
Swelling is generally depicted reliant on its rate and causes. By and large, Inflation happens in an economy when vitality for thing and experiences outmaneuvers the supply of yield. in this manner, clarifications behind Inflation have different sides, the intrigue side and supply side. The widely inclusive activity of hazard premiums in driving enlargement pay over the scope of advancing years is dependable with secured budgetary improvement and inside and out oblige cash related procedure events in the moved economies. The degree for further fitting budgetary enabling seen with money related stars seems to have declined amidst the enough low advance charges and gigantic monetary records of national banks (Bodie, 2016).
In relentless time, the correspondence of perils has wound up being constantly phenomenal, the general point of view has lit up, and money related conditions have engaged on net. With the work superstar proceeding to reinforce, and GDP improvement expected to keep up a vital good ways from back in the consequent quarter, it likely will be fitting soon to change the affiliation supports rate. Likewise, if the economy propels as shown by the SEP concentrate way, the affiliation supports rate will probably app ...
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
FIN 534 Week 10 Multinational Financial ManagementSlide 1Intr.docxssuser454af01
FIN 534 Week 10: Multinational Financial Management
Slide 1
Introduction
Welcome to Financial Management. In this lesson we will discuss multinational financial management.
Next slide
Slide 2
Topics
The following topics will be covered in this lesson:
Multinational, or global, corporations;
Multinational versus domestic financial management;
Exchange rates;
Exchange rates and international trade;
The international monetary system and exchange rate policies;
Trading in foreign exchange;
Interest rate parity;
Purchasing power parity;
Inflation, interest rates, exchange rates;
International money and capital markets;
Multinational capital budgeting;
International capital structures; and
Multinational working capital management.
Next slide
Slide 3
Multinational, or Global, Corporations
When the firm operates in another country it faces issues that it doesn’t face in its domestic country. Any time we talk about the firm operating in a foreign country we refer to it as a multinational, transnational or global corporation and these terms are used interchangeably. Firms choose to locate in a foreign country for a variety of reasons.
First, the firm wants to broaden its markets. This usually happens when the domestic market becomes saturated.
Second the firm may want to ensure a source of raw materials.
Third the firm may need a new form of technology.
Fourth it may shift production to a lower – cost country.
Fifth, the firm may want to avoid political and regulatory issues in its home country.
And sixth, the firm may want to diversify so it can have a cushion against any adverse impact of changing economic conditions in any one country.
Next slide
Slide 4
Multinational versus Domestic Financial Management
The concepts and procedures we’ve studied up to this point apply to domestic as well as multinational operations. There are however, six major factors that distinguish financial management in a purely domestic firm from one that operates globally.
First the global firm is affected by exchange rates because cash flows are denominated in different currencies.
Second, since each country has its own economic and legal systems it can make it difficult for the firm to deploy resources and make it difficult for executives trained in one country to move to another.
Third, language differences make it difficult to communicate.
Fourth, different countries have different cultural differences that shape the values and influence the firm’s ability to conduct business.
Fifth, sometimes in foreign countries governments negotiate directly with the firm. In this way, the marketplace does not determine the terms of trade on which transactions are determined.
And sixth, a foreign country may place restrictions or expropriate assets within its boundaries. This is referred to as political risk and it varies from country to country. Terrorism is another form of political risk faced by the global firm.
Next slide
Slide 5
Exchan ...
The 10 Most Important Fundamental Indicators jamesyx
Fundamental indicators make it easier to predict whether a currency is about to increase or decrease in relative value. As opposed to technical indicators, which indiscriminately focus on the numbers, fundamental indicators account for material developments in the real world.
Liquidity of an asset has been defined as a degree where asset or security can be bought or sold in the securities market and this sale or purchase is done without harming the asset’s price. Liquidity has its own benefits such as investment in liquid assets than the illiquid ones. The liquid assets can be easily converted into cash which include the blue chip and money market securities. The ease and comfort with which financial instruments such as stocks and bonds are converted into ownership is the main essence of liquid assets (Burke, n.d.). Liquidity problems can arise due to the following business factors such as:
ASSIGNMENT 4
g
[Name of the Student]
[Name of the University]
Running Head: ASSIGNMENT 1
General Essay Questions (5pts each)
1. What are TIPs? How do these securities provide a hedge against inflation? Discuss the spread between traditionally-structured Treasury notes and TIPs. What factors influence this spread relationship?
TIPs are the Treasury Inflation Protected securities. These are the bonds issued by the government that offer return after the inflation which is also known as a real return. they are different from the nominal or traditional bonds in which the returns are specifically before inflation. This is the way for the investors for offsetting the risk that comes with the inflation. These TIPs offer the hedge against inflation by providing a return which is calculated after taking out the risk of inflation. This is the best way for investors to offset the risk that comes due to the inflation in society. With the strengthening of the economy, inflation can increase, and the return is not expected to increase in the high rate of inflation, so for affording protection against inflation in the economy, TIPs are used in the form of fixed income investment for the destruction of inflation. TIPs are backed by the government and they offer high attractiveness for the investors because the level of risk in these securities is less.
TIP spread is when the yield of TIPS and other US Treasury securities is compared having the same date for the maturity. The difference that exists between both of them is used as payment adjustment for the inflation. The traditionally structured treasury notes do not consider inflation at the start and the yield is used for compensating the investors for the expected future rate of inflation. This spread between both securities is the indication for the market about inflation. The most important factor in influencing the spread relation is inflation because this spread is basically dependent on the inflation rate change. The spread is basically the projection for the inflation and it cannot be predicted how it will change in the future. Comprehensively, the TIP spread is considered to be a reliable measure for predicting the appropriate level of inflation.
2. Fully describe the fixed-income instruments of the money and capital markets. Make sure you cover all the money and bond markets we discussed. Do not just list the instruments.
Among financial markets, there are two most commonly used concepts, one is a capital market and the other one is the money market. The money market is used by the corporate entities and government for lending and borrowing money for a short term. In contrast, capital market contains long term assets with having the maturity of more than a year. In the capital market, the bonds and stock options are available. The securities in the capital market which offer a fixed rate of return are called as fixed - rate capital securities and a combination of features for the comm.
Similar to Covered interest parity a law of nature in currency markets (20)
The lack of visibility given to the counterparties by Gunvor is posing a major
obstacle for an investor à la ADNOC to determine the group value.
● Gunvor USA has closed $1.45B “uncommitted” credit: an uncommitted facility
loan that once signed, does not oblige the lenders to provide the funds to the
borrower… previously it signed a near $1B in off-balance sheet financing facility.
● *****Muriel Anouk Scwab, CFO is on “sabbatical leave”.
● Gunvor Group poses substantial risks to the Swiss banking and financing sector:
By the derivatives even if Gunvor survives, the debt to equity is now 11X.
● It is a less than $1B balance-sheet carrying billions of MTM derivatives contracts
84% of its cash is generated by a debt-inflow.
This annual report of worldwide threats to the national security of the United States responds to Section 617 of the FY21 Intelligence Authorization Act (P.L. 116-260).
AOT’s complaint plausibly alleges that ADM violated the CEA by engaging in a scheme to
manipulate the Chicago Benchmark Price. ADM has not demonstrated otherwise, and its motion to
dismiss should be denied in its entirety.
In three trading days BROYLES lost $3.6M. His losses accelerated the following week. On January 9 lost $2.2M and twice as much as on January 8. As his losses mounted, Smith tried to reach BROYLES on the morning of January 10. However BROYLES did not arrived until the afternoon and his portfolio lost more than $5.2 Million that day.
CEMP USD Trade Flow Fund SP Tradeflow capital management pte risk report (2)GE 94
Tradeflow capital management pte risk report (1)
USD Trade Flow Fund SP Cayman Islands, Grand Cayman in the worst case is an outright fraud and in your very best case leverage is 75:3
Trade finance funds loaded up commodity sector transactional financing in the...GE 94
Trade finance funds loaded up commodity-sector transactional financing in the recent years have stopped redemptions to the investors
The damages have already been done. Some funds will cease unless they succeed to mash-out the losses into new funds.
The reality contrasts very much with the portrait brushed by INOKS and Scipion in trade finance.
Hin leong trading financial statements (unaudited) (1)GE 94
According to the Chinese Dao "reality is built from the beating of opposites". We can't fully comprehend the ocean of mysteries in the Hin Leong affair unless we understand "who hold the bag": the bigger risk, in all this is the banks.
La région lémanique est l’un des sites les plus importants au monde pour le commerce des matières premières.
L’importance économique du secteur des matières premières
sur les rives du Léman est considérable. Sept des dix premières
entreprises suisses en termes de chiffre d’affaires sont issues de
ce secteur ou y sont fortement liées. Cinq d’entre elles (dont
Vitol, Trafigura et Cargill) sont basées à Genève, et une (Nestlé)
à Vevey. Près de deux tiers de toutes les entreprises de matières
premières en Suisse se trouvent dans les cantons de Genève et de
Vaud. L’industrie des matières premières ne comprend pas seulement des sociétés de négoce, mais intègre également des entreprises de secteurs qui y sont fonctionnellement liées comme
les banques, les compagnies d’assurance, les compagnies de
navigation et les groupes d’inspection de marchandises. Selon
les estimations| 1, ce cluster génère plusieurs milliers d’emplois
à Genève – dont un grand nombre de salariés hautement qualifiés – et 20% des recettes fiscales des personnes morales selon
l’administration cantonale. La région lémanique est le leader
mondial du négoce physique de matières premières (voir figure),
du financement du commerce et de l’inspection des marchandises. 22% des transports globaux de matières premières sont
organisés depuis la région.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Covered interest parity a law of nature in currency markets
1. Covered Interest Rate Parity: A Law of
Nature in Currency Markets?
Asset managers dealing in FX forwards should be aware of Covered Interest Rate
Parity frictions to ensure that their execution styles align with their clients’
interests. In this piece, by BBH's Hendrik Klaus, we present a framework for
examining this new pattern in FX forward markets.
Once the ‘law of gravity’ in international currency markets, Covered Interest Rate Parity
(CIP) is becoming an increasingly imperfect description of FX forward pricing dynamics.
CIP, or the principle that forward prices must reflect interest rate differentials between
traded currencies, can be distorted by a range of factors that vary both over time and
across markets. Asset managers dealing in FX forwards should be aware of these frictions
to ensure that their execution styles align with their and their clients’ interests. In this
piece, we present a framework for examining this new pattern in FX forward markets.
CIP is a cornerstone principle in international finance. First described by John Maynard
Keynes in 1923, the idea that FX forward rates must reflect interest rate differentials
between currencies has long been considered one of the best tested theories in financial
economics. If a market participant is willing to swap a higher yielding currency for a
lower yielding currency over some time horizon, he must be compensated for the
difference in yield via an adjusted forward price. Otherwise an arbitrage opportunity
arises until prices and interest rates align again.
The financial crisis and direct aftermath revealed cracks in the armour of CIP. In a market
environment with scarce liquidity and high credit risks in forward markets, dealers were
2. constrained in their ability to profit from what was previously regarded as an almost risk-
free arbitrage trade. But as conditions in financial markets slowly normalised after the
crisis, CIP deviations remained and cross-currency basis never returned to its pre-crisis
levels. After narrowing for some time, it started to widen again across most G10 pairs
since approximately 2015. Increasingly, FX forward markets seemingly do not reflect
what would be expected given the observed interest rate differentials. Figure 1 illustrates
these dynamics by depicting the magnitude of G10 cross-currency basis over time for an
exemplary three-month tenor.
By now, the existence of persistent, predictable cross-currency basis has been widely
documented in the academic literature for a variety of currency pairs and across a
spectrum of benchmark interest rates.1,2,3,4
Given the importance of CIP as an organising
principle in international finance, instances where it appears to fail are now an active and
ongoing area of research. Two key questions are crucial when trying to make sense of the
observed facts: What are the demand forces in FX forward markets that seem to drive
price deviations and create cross-currency basis? And how can these deviations from CIP
persist over time within a large and liquid market such as G10 FX?
3. The data limitations of an OTC market make a wholistic analysis of demand dynamics in
FX forwards challenging. Nevertheless, a growing literature on CIP deviations suggests
multiple factors which together seem to drive demand and ultimately cross-currency basis
in G10 currencies. The picture of a segmented market emerges, where a significant
portion of cross-currency forward demand is driven by dollar funding needs and hedging
requirements of globally invested banks, institutional investors, and corporates.3
The need for dollar funding in forward markets arises when a firm holds dollar-
denominated assets from its business activities, but funds at least part of these activities
via liabilities in a non-dollar currency. An example for a positive dollar funding gap
might be a Japanese bank that engages in dollar-denominated intermediation in global
markets but is funded through yen-denominated equity and debt. Such balance sheet
mismatches not only result in currency risk for the firm but can also entail significant
capital charges and invite regulatory scrutiny. There is thus a strong incentive for firms to
limit the size of such a funding gap and assume a liability that can be used to offset dollar
assets on their balance sheets. This can be achieved by selling a dollar forward, i.e. enter
into an obligation to pay dollars and receive some other currency in the future. In our
example, the Japanese bank would sell a USDJPY forward and offset the resulting
liability with its dollar assets.
4. International, non-US financial institutions are naturally exposed to positive dollar
funding gaps as a result of their activities in global financial markets and balance sheets
that are to a significant extent funded by non-USD liabilities. According to statistics from
5. the Bank for International Settlements (BIS), consolidated funding gaps ranged between
10 to 30% of total dollar assets for European banks and exceeded 45% of total dollar
assets among Japanese banks in 2016.3,7
Since the financial crisis, regional differences in
dollar funding needs have increased. While European banks have reduced their dollar
asset sizes, Japanese banks have seen growth in the size of their dollar denominated
assets and with it the potential for larger dollar funding gaps (see Figure 2). Although
demand for short dollar forwards is prevalent across most major currencies, these figures
suggest that USDJPY forwards play a particularly important role as tools to manage
banks’ funding gaps.
Dollar funding pressures also arise from corporate issuance in international debt
markets.1,2,5,6
For instance, US firms have increasingly taken advantage of cheaper
funding opportunities abroad by issuing non-dollar denominated debt (Reverse Yankee
bonds). Such activity appears to be a significant driver behind dollar funding pressures
and ultimately cross-currency basis in the EURUSD pair. As Figure 3 illustrates, the
difference in corporate financing costs in the US vs. the eurozone seems to be related to
the magnitude of cross-currency basis. And the significant increase in US-firms’ EUR
debt issuance thus appears to be a direct driver of increasing CIP deviations that have
been observed in recent years.
Large scale hedging programs from institutional investors add another significant source
of demand for currency forwards. The search for yield has for some time now motivated
large capital flows from lower yield currencies (e.g., yen, Swiss franc) to higher yield
currencies (e.g., US dollar). At the same time, investors may seek to hedge their foreign
currency exposure, which again generates demand for short dollar forwards to eliminate
the long dollar exposure from any investments. On a net basis, hedging demand is largely
one-directional and significant in size, but varies across currency pairs.2
Although
aggregate data is generally hard to collect, figures for Japanese insurance companies are
available and provide an indication of the magnitude of hedged flows with investments in
USD denominated bonds exceeding USD $600 billion in 2018 and typical hedge ratios of
approximately 60-70%.6
Although the underlying sources of demand are different, dollar funding pressures and
hedging demand are ultimately two birds of a feather. In both cases, FX forward markets
are accessed to protect against a currency mismatch that results from global business and
investment activities. While the examples in this white paper have focused on relevant,
real-world cases of positive US dollar funding gaps (or hedging demand that looks to
short USD forwards), a more rigorous examination indicates that the net demand flow
and ultimately the sign of cross-currency basis appears to be strongly correlated with
yield levels across G10 countries (see Figure 4).4
In relation to the US dollar this
suggests: the larger the discrepancy of a currency’s interest rate relative to the USD yield,
the more significant the cross-currency basis relative to USD. It appears plausible that
this correlation is the manifestation of a causal relationship. Differences in yield across
regions move capital across borders (e.g., through search for yield, Reverse Yankee
issuance). This movement in turn creates a demand for hedging and balance sheet
funding, which ultimately drives forward demand and cross-currency basis.
6. The above gives possible reasons as to why one-directional demand pressure is prevalent
in FX forward markets and why prices do not align with what interest rate differentials
would suggest. It is also noteworthy that funding needs and hedging demand tend to be
relatively inelastic in the short term. (Inelastic means that the quantity of demand does
not react much to price changes.) Firms often have no choice but to address funding gaps
on their balance sheets and shorter-term changes in the cost of hedging rarely have an
immediate impact on institutional investors’ hedging decision per se. Nevertheless, one-
directional, rigid demand dynamics on their own are insufficient to explain the persistent
violation of covered interest rate parity.
If CIP truly is a no-arbitrage condition, what prevents market participants from engaging
in the arbitrage trade, earning a ‘free lunch,’ and providing enough supply to meet the
increasing demand?
If we pick yen as a currency where CIP deviations have been particularly severe and
focus on shorter dated forward contracts, a striking pattern emerges as illustrated in
Figure 6. At regular intervals, which match reporting dates at the end of each financial
quarter, cross-currency basis spikes. The spikes occur precisely on the day when the
related forward’s tenor spans two quarters: the 1-week basis widens exactly one week
before the quarterly turn, the 1-month basis one month before, and so on. In the case of
yen, this means that shorting a USDJPY forward over quarter-end is significantly more
7. expensive than setting up a contract within just one quarter. In other words, carrying a
short dollar position over quarter-end comes at a substantial premium.
This distinct pattern at quarter-ends provides strong evidence that regulatory frictions
may play a major role in causing CIP to fail. As discussed above, financial institutions
have a strong incentive to close funding gaps to limit regulatory capital charges. But for
European regulators in particular, not all days of the year are created equal; European
banks’ capital requirements are only assessed on the final day of each quarter. At the
same time, those European banks play a crucial role in supplying forwards to meet the
global demand for hedging and dollar funding − in part due to the limitations US institu-
tions face under the Volcker rule. At quarter-ends, when European banks must now keep
their funding gaps in check, supply collapses and cross-currency basis spikes.
This extreme form of supply shortage at quarter-ends is a case in point for the more
general supply constraints that may ultimately explain the persistence of cross-currency
basis. Engaging in the arbitrage trade and supplying FX forwards to meet one-directional
demand flows in the market is capital intensive for banks – and unless forward tenors are
short enough not to span across two quarters, those capital costs are likely passed on to
the demand side.
Other, less tightly regulated entities such as hedge funds have so far not been able to
replace banks in their role as arbitrageurs. While significant, the premium to be earned in
the CIP trade does not seem large enough relative to the spread a hedge fund pays in
order to borrow on an unsecured basis and lever up the trade. As an example, Figure 1
8. shows that 3M CIP deviations in recent years went as high as approximately 50bps. This
means a hedge fund would need access to unsecured borrowing at a rate of less than
LIBOR + 50bps over a three-month horizon to make the trade profitable (borrowing
needs to be unsecured to lever up the arbitrage trade). This may be an unrealistic rate for
most funds.8
A remaining question is whether and to what extent long cash investors are
able to engage in CIP trades to earn an additional premium on their cash holdings. The
data suggest that if such activity is occurring, it is not sizeable enough to meet the
demand and eliminate CIP deviations.
In addition to regulatory capital costs faced by banks and the borrowing constraints faced
by non-bank entities, it is noteworthy that CIP is not a true arbitrage condition unless
liquidity and counterparty risks in the forward markets are deemed sufficiently small. It is
possible that the experience of the financial crisis has once and for all changed the
market’s perception on how to price such risks and a swap trade that prior to Lehman was
largely regarded as risk-free now generates a premium.
For asset managers dealing in FX forward markets, CIP deviations have concrete
implications. Maintaining a hedge has generally become more expensive in recent years,
but the extent to which hedging costs have changed varies significantly across currency
pairs. Moreover, frictions in the forward market around quarter-ends mean that price
discovery becomes more challenging and often less transparent. In an environment where
CIP persistently fails, it is less obvious what a “fair” forward price would look like, and
classical TCA frameworks must be applied with caution. Furthermore, dealer prices
might be significantly distorted by the dealer’s own funding requirements, which can
vary heavily across both time and regions. Under such conditions, asset managers should
not revert to out-of-the-box forward execution. As FX markets generally trend towards
low touch execution models, the failure of CIP may provide an incentive for careful,
manual forward execution that leverages a network of trusted dealers and considers the
various factors that are at play when supply shortages distort FX forward prices.
Disclosures
This material contains “forward-looking statements” which include information relating to future events, projected future
performance, statements regarding intentions, strategies, investments, expectations, the competitive and regulatory environments,
predictions, and financial forecasts concerning future foreign exchange activities and results of operations and other future events or
conditions based on the views and opinions of BBH. For this purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on
information available at the time the statements are made and/or BBH’s good faith belief as of that time with respect to future events,
and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in,
or suggested by, the forward-looking statements. Actual results of activities or actual events or conditions could differ materially from
those estimated or forecasted in forward-looking statements due to a variety of factors.