Investment strategy for consistent high returns and low risk. Ideal for financial markets that have high volatility and no definite trend. In operation since October 2010, yielding a consistent return of +/-2% per month.
A bond is a tradable debt instrument that represents a loan made by an investor to an issuer. Bonds pay periodic interest payments and return the principal at maturity. Bonds offer safety, reliable income, potential for capital gains, and tax advantages compared to stocks. Adding bonds to a stock portfolio can lower risk through diversification while lowering expected returns. The value of a bond is determined by its coupon rate, face value, time to maturity, and required yield.
Evolution of Interest Rate Curves since the Financial CrisisFrançois Choquet
This is a presentation given to Bloomberg end users working in front, middle and back offices in Dec. 2010. It highlights the financial crisis and the subsequent shift of financial instruments used to construct a valid interest rate curve. It outlines the methodology to build a reliable curve with Deposits, FRAs, Futures and Swaps and defines the validation principles.
The document discusses liability management strategies at General Motors in 1992, including issuing a $400 million public bond offering or engaging in interest rate swaps and derivatives to hedge against interest rate risk. It analyzes the costs and risks of different options like doing nothing, issuing fixed rate bonds, or entering swap agreements to exchange fixed rate payments for floating rates. The best strategy depends on Stephane Bello's predictions for interest rate trends in the coming years.
Since their introduction in the 1990s short term derivatives instruments have become widely used. Their popularity has increased in the wake of the 2007/2008 financial crisis with trading growing by 33% from 2008 to mid 2009 according to the BIS.
It is due mainly to the fact that LIBOR-based instruments often did not capture movements in policy rates as a result of credit-induced widening in LIBOR rates.
Hedgers increased their usage of short-term instruments in order to protect their cash flows better from unexpected moves in spreads and/or policy rates. Meanwhile, speculators increased their trading of more tailored products such as OIS to express views on policy rates while becoming far more active in the basis markets to take advantage of spread movements.
This tutorial focuses on the Libor OIS basis trade. It starts with the building blocks of the LIBOR and moves on to cover the most common instruments in the front-end and basis markets : FRAs and OIS. The salient features of each instrument and the full trade cycle from idea generation and set up, to valuation and marked to market, are presented and illustrated using Bloomberg pricing and analytics.
This document provides an overview of asset swaps and Z-spreads. It begins with an introduction to interest rate swaps, including how they work and their cash flows. It then discusses zero-coupon swaps and how swap curves can be used to derive forward rates and discount factors. The document explains how asset swaps combine a bond investment with an interest rate swap to exchange fixed cash flows for floating rates. Finally, it introduces the concept of Z-spreads which allow fair comparisons of bond yields to swap rates.
The document discusses using Eurodollar futures and interest rate swaps to hedge interest rate risk for loans with variable interest rates. It provides examples of how a borrower could use these instruments to create synthetic fixed rate loans and protect against rising interest rates. By entering offsetting positions in the futures market, the borrower can lock in rates and reduce uncertainty, while the lender can better manage its own interest rate risk exposure.
The document discusses various topics related to bond valuation including:
1) Types of bonds and bond risks.
2) Methods of calculating bond yields like current yield, coupon yield, and yield to maturity.
3) Bond valuation techniques like calculating present value of future cash flows.
4) Factors that impact bond prices like coupon rate, maturity, and yield.
A bond is a tradable debt instrument that represents a loan made by an investor to an issuer. Bonds pay periodic interest payments and return the principal at maturity. Bonds offer safety, reliable income, potential for capital gains, and tax advantages compared to stocks. Adding bonds to a stock portfolio can lower risk through diversification while lowering expected returns. The value of a bond is determined by its coupon rate, face value, time to maturity, and required yield.
Evolution of Interest Rate Curves since the Financial CrisisFrançois Choquet
This is a presentation given to Bloomberg end users working in front, middle and back offices in Dec. 2010. It highlights the financial crisis and the subsequent shift of financial instruments used to construct a valid interest rate curve. It outlines the methodology to build a reliable curve with Deposits, FRAs, Futures and Swaps and defines the validation principles.
The document discusses liability management strategies at General Motors in 1992, including issuing a $400 million public bond offering or engaging in interest rate swaps and derivatives to hedge against interest rate risk. It analyzes the costs and risks of different options like doing nothing, issuing fixed rate bonds, or entering swap agreements to exchange fixed rate payments for floating rates. The best strategy depends on Stephane Bello's predictions for interest rate trends in the coming years.
Since their introduction in the 1990s short term derivatives instruments have become widely used. Their popularity has increased in the wake of the 2007/2008 financial crisis with trading growing by 33% from 2008 to mid 2009 according to the BIS.
It is due mainly to the fact that LIBOR-based instruments often did not capture movements in policy rates as a result of credit-induced widening in LIBOR rates.
Hedgers increased their usage of short-term instruments in order to protect their cash flows better from unexpected moves in spreads and/or policy rates. Meanwhile, speculators increased their trading of more tailored products such as OIS to express views on policy rates while becoming far more active in the basis markets to take advantage of spread movements.
This tutorial focuses on the Libor OIS basis trade. It starts with the building blocks of the LIBOR and moves on to cover the most common instruments in the front-end and basis markets : FRAs and OIS. The salient features of each instrument and the full trade cycle from idea generation and set up, to valuation and marked to market, are presented and illustrated using Bloomberg pricing and analytics.
This document provides an overview of asset swaps and Z-spreads. It begins with an introduction to interest rate swaps, including how they work and their cash flows. It then discusses zero-coupon swaps and how swap curves can be used to derive forward rates and discount factors. The document explains how asset swaps combine a bond investment with an interest rate swap to exchange fixed cash flows for floating rates. Finally, it introduces the concept of Z-spreads which allow fair comparisons of bond yields to swap rates.
The document discusses using Eurodollar futures and interest rate swaps to hedge interest rate risk for loans with variable interest rates. It provides examples of how a borrower could use these instruments to create synthetic fixed rate loans and protect against rising interest rates. By entering offsetting positions in the futures market, the borrower can lock in rates and reduce uncertainty, while the lender can better manage its own interest rate risk exposure.
The document discusses various topics related to bond valuation including:
1) Types of bonds and bond risks.
2) Methods of calculating bond yields like current yield, coupon yield, and yield to maturity.
3) Bond valuation techniques like calculating present value of future cash flows.
4) Factors that impact bond prices like coupon rate, maturity, and yield.
Interest Rates and Bond Evaluation by Junaid ChohanJunaid Ashraf
This chapter discusses interest rates and bond valuation. It covers key bond concepts such as bond features, types, and valuation. Bond values fluctuate due to changing interest rates, as higher rates lower bond prices. Bond ratings indicate credit risk, with higher-rated bonds having lower yields. Inflation impacts nominal interest rates through the Fisher effect. The term structure of interest rates refers to the relationship between maturity and yields, with the yield curve normally upward sloping. Required bond returns depend on characteristics like risk, tax treatment, liquidity, and call provisions.
The document discusses various investment opportunities for pension schemes arising from market conditions following the 2008 credit crunch, including gilt repurchase agreements (repo), gilt total return swaps, and collateral upgrade trades. It provides details on how gilt repo and total return swaps work, comparing them on factors like liquidity, maturity, transparency, and documentation. It also explains what a collateral upgrade trade entails, where a pension scheme loans gilts to a bank in return for less liquid collateral and a fee.
The European leveraged loan and high yield bond markets were on holiday in August and early September. Literally. There was no HY bond activity and only a hint of loan activity, as investors withdrew from market amid the European economic turmoil.
Connect with LCD
Facebook: http://www.lcdcomps.com/facebook
Like LCD on Facebook for monthly analysis on LBO/Private equity stats, as well as Default/Restructuring analysis.
LinkedIn: http://www.lcdcomps.com/linkedin
There's almost 6,000 market contacts in LCD's Leveraged Loan Group
Twitter: http://www.twitter.com/lcdnews
News, commentary, other leveraged finance info
Web: http://www.lcdcomps.com
Contact: anna_cini@sandp.com
ULI Los Angeles DEBT Where to find it in 2010Bob Eidson
This is a presentation I prepared for a ULI LA Education Event "DEBT: Where to find it in 2010." We brought 4 institutional scale lenders together, to respond to 4 loan request scenarios. If the CMBS market grows 10x in 2010, then it will only accomodate 3% of maturities. Debt will still come from Life Cos, Banks (recourse & non-recourse), and Mezz lenders
This document provides an overview of bond valuation and the structure of interest rates. It defines key bond concepts like yield to maturity, effective annual yield, and bond price calculation. It also discusses how bond prices are affected by interest rate changes and risk characteristics like default risk, call provisions, and term to maturity. The shape of the yield curve is determined by the real interest rate, expected inflation, and interest rate risk premium.
The 30-year bond has more interest rate risk.
37
Interest Rate Risk
- Longer-term bonds have greater interest rate risk than
shorter-term bonds because their prices are more
sensitive to changes in interest rates.
- When interest rates rise, the price of an existing bond
falls more for longer-term bonds than for shorter-term
bonds.
- When interest rates fall, the price of an existing bond
rises more for longer-term bonds than for shorter-term
bonds.
- Therefore, longer-term bonds have greater price volatility
and interest rate risk.
38
Default Risk
- Default risk is the risk that the issuer will not repay the
Bond valuation involves calculating the present value of a bond's future interest payments and principal repayment. There are several types of bonds that differ in issuer and features. Bonds are issued by corporations and governments to raise funds for projects while managing costs and diversifying sources of capital. Investors face various risks when purchasing bonds like interest rate, default, market and call risks. Key metrics for bonds include current yield, yield to maturity, yield to call and realized yield, which are calculated using principles of time value of money. Bond prices generally move inversely to interest rates and bonds with longer maturities are more sensitive to interest rate changes. Price impacts from interest rate changes are also not symmetrical. Lower coupon bonds experience greater price volatility from
This document provides an overview of key concepts related to bond valuation including:
1) Bond valuation involves calculating the present value of future cash flows from coupons and principal. Bond prices fluctuate as interest rates change.
2) Bond ratings indicate credit quality and impact required returns, with higher-rated bonds having lower yields.
3) Inflation and expected inflation impact nominal interest rates through the Fisher effect.
This document contains information about a 10-year bond with a face value of $1,000, coupon rate of 10%, and yield to maturity of 10%. It calculates the bond's price of $1,000 using the present value of cash flows. It also shows the bond's duration is 6.76 years and how its price would change with a change in interest rates based on duration.
Fixed income refers to investments that pay regular interest payments, such as bonds. The document discusses various types of fixed income investments including bonds issued by governments and corporations. It also covers concepts like bond yields, prices, and how yields are calculated based on interest rates and price fluctuations. Examples are provided to illustrate how to compute yields given the coupon rate, price paid, and maturity date of a bond.
Bonds and shares can be valued using various approaches such as book value, replacement value, liquidation value, and market value. Bond values are determined by factors like face value, interest rate, maturity, redemption value, and market yield. The yield to maturity considers interest payments and capital gains/losses, while current yield only considers annual interest. Duration measures a bond's price sensitivity to interest rate changes. The term structure of interest rates, as shown by the yield curve, can be normal upward sloping or inverted. The expectation, liquidity premium, and segmented markets theories seek to explain the typical upward sloping yield curve. Credit ratings factor in default risk.
The document explains the inverse relationship between bond prices and yields. It states that when bond prices go down, bond yields go up, and vice versa. This is illustrated with an example where one investor, Ravi, needs to sell his bond for an emergency. The buyer, John, purchases the bond at a lower price than Ravi paid. However, John earns a higher yield since he paid less for the bond that pays the same return. The example shows that when bond prices fall, the yields rise for new buyers, demonstrating the inverse relationship between the two.
This document discusses key topics related to bonds, bond valuation, and interest rates. It begins by outlining topics that will be covered in the chapter, including who issues bonds, bond characteristics, bond valuation, and determinants of market interest rates. The document then defines what a bond is and provides examples of different bond classifications. Several key bond characteristics are defined, such as par value, coupon payment, maturity date, call provisions, and sinking funds. The document also discusses bond valuation methodology and how bond prices are affected by changes in market interest rates. It provides examples to illustrate these concepts. The remainder of the document covers additional topics like bonds with semiannual coupons and different methods for calculating bond yields.
This document discusses key concepts related to bond valuation including:
1) The key features of bonds such as par value, coupon rate, maturity date, and default risk.
2) How bond valuation is calculated using the present value of future cash flows discounted at the required yield.
3) How the value of a bond changes as the required discount rate or expected yield changes, affecting whether it trades at a premium or discount.
This document discusses bond valuation and risk. It outlines the bond valuation process, which involves computing the present value of a bond's expected cash flows. Bond prices are related to the coupon rate and required rate of return. The sensitivity of bond prices to interest rate movements can be measured using concepts like bond price elasticity and duration. A bond's price duration estimates how much its market value will change as interest rates change.
Bond Valuation, Bond Types, Bond Characteristics, Reasons for issuing Bonds, Bond Risks, Bond Measuring Yield, Bond Pricing Theorems, Factors that Influence Bond Prices, Primary Bond Market, Secondary Bond Market, Bonds in Nepal.
Trade #1-6 describe various risk arbitrage situations involving mergers and acquisitions. A special situation is described that yields profit even if the market does not advance. Buffett's analysis of the Arcata Corporation buyout is summarized, including his valuation of the contingent claim and the outcomes.
The document then provides a general overview of risk arbitrage, explaining the four questions one must answer to evaluate such situations: the likelihood of the event occurring, the time commitment, the chance of a better outcome, and what would happen if the event does not occur. An annexure to Security Analysis is referenced.
Bond values can be discussed in terms of dollar price or yield to maturity, which are equivalent. Bond yields include the coupon rate, current yield, yield to maturity, modified yield to maturity, yield to call, and realized yield. Duration is a measure of bond price volatility that accounts for time to maturity and coupon payments. It indicates the sensitivity of price to changes in yield. Modified duration adjusts for the holding period yield. Convexity measures the curvature of the price-yield relationship.
BONDS, FEATURES OF BONDS, BOND VALUATION, MEASURING YIELD, ASSESSING RISK, TYPES OF LONG- TERM DEBT INSTRUMENTS, SERIAL BONDS, TYPES OF RISK, SEMI- ANNUAL BONDS, YIELD TO CALL, YIELD TO MATURITY, DEFAULT RISK & FACTORS AFFECTING DEFAULT RISK & BOND RATINGS, etc.
Tiberius was the second Roman Emperor, ruling from 14 AD to 37 AD. He was known for his weird fetishes when he retired to Capri. Caligula was the third Emperor and was known for his erratic behavior. Claudius was the fourth Emperor. Nero was the fifth Emperor, originally named Lucius Domitus Ahenobarbus. He passed laws allowing him to kill opponents, was blamed for starting the Great Fire of Rome, and was eventually forced to commit suicide. After the fire, Nero built the extravagant Domus Aurea palace.
Interest Rates and Bond Evaluation by Junaid ChohanJunaid Ashraf
This chapter discusses interest rates and bond valuation. It covers key bond concepts such as bond features, types, and valuation. Bond values fluctuate due to changing interest rates, as higher rates lower bond prices. Bond ratings indicate credit risk, with higher-rated bonds having lower yields. Inflation impacts nominal interest rates through the Fisher effect. The term structure of interest rates refers to the relationship between maturity and yields, with the yield curve normally upward sloping. Required bond returns depend on characteristics like risk, tax treatment, liquidity, and call provisions.
The document discusses various investment opportunities for pension schemes arising from market conditions following the 2008 credit crunch, including gilt repurchase agreements (repo), gilt total return swaps, and collateral upgrade trades. It provides details on how gilt repo and total return swaps work, comparing them on factors like liquidity, maturity, transparency, and documentation. It also explains what a collateral upgrade trade entails, where a pension scheme loans gilts to a bank in return for less liquid collateral and a fee.
The European leveraged loan and high yield bond markets were on holiday in August and early September. Literally. There was no HY bond activity and only a hint of loan activity, as investors withdrew from market amid the European economic turmoil.
Connect with LCD
Facebook: http://www.lcdcomps.com/facebook
Like LCD on Facebook for monthly analysis on LBO/Private equity stats, as well as Default/Restructuring analysis.
LinkedIn: http://www.lcdcomps.com/linkedin
There's almost 6,000 market contacts in LCD's Leveraged Loan Group
Twitter: http://www.twitter.com/lcdnews
News, commentary, other leveraged finance info
Web: http://www.lcdcomps.com
Contact: anna_cini@sandp.com
ULI Los Angeles DEBT Where to find it in 2010Bob Eidson
This is a presentation I prepared for a ULI LA Education Event "DEBT: Where to find it in 2010." We brought 4 institutional scale lenders together, to respond to 4 loan request scenarios. If the CMBS market grows 10x in 2010, then it will only accomodate 3% of maturities. Debt will still come from Life Cos, Banks (recourse & non-recourse), and Mezz lenders
This document provides an overview of bond valuation and the structure of interest rates. It defines key bond concepts like yield to maturity, effective annual yield, and bond price calculation. It also discusses how bond prices are affected by interest rate changes and risk characteristics like default risk, call provisions, and term to maturity. The shape of the yield curve is determined by the real interest rate, expected inflation, and interest rate risk premium.
The 30-year bond has more interest rate risk.
37
Interest Rate Risk
- Longer-term bonds have greater interest rate risk than
shorter-term bonds because their prices are more
sensitive to changes in interest rates.
- When interest rates rise, the price of an existing bond
falls more for longer-term bonds than for shorter-term
bonds.
- When interest rates fall, the price of an existing bond
rises more for longer-term bonds than for shorter-term
bonds.
- Therefore, longer-term bonds have greater price volatility
and interest rate risk.
38
Default Risk
- Default risk is the risk that the issuer will not repay the
Bond valuation involves calculating the present value of a bond's future interest payments and principal repayment. There are several types of bonds that differ in issuer and features. Bonds are issued by corporations and governments to raise funds for projects while managing costs and diversifying sources of capital. Investors face various risks when purchasing bonds like interest rate, default, market and call risks. Key metrics for bonds include current yield, yield to maturity, yield to call and realized yield, which are calculated using principles of time value of money. Bond prices generally move inversely to interest rates and bonds with longer maturities are more sensitive to interest rate changes. Price impacts from interest rate changes are also not symmetrical. Lower coupon bonds experience greater price volatility from
This document provides an overview of key concepts related to bond valuation including:
1) Bond valuation involves calculating the present value of future cash flows from coupons and principal. Bond prices fluctuate as interest rates change.
2) Bond ratings indicate credit quality and impact required returns, with higher-rated bonds having lower yields.
3) Inflation and expected inflation impact nominal interest rates through the Fisher effect.
This document contains information about a 10-year bond with a face value of $1,000, coupon rate of 10%, and yield to maturity of 10%. It calculates the bond's price of $1,000 using the present value of cash flows. It also shows the bond's duration is 6.76 years and how its price would change with a change in interest rates based on duration.
Fixed income refers to investments that pay regular interest payments, such as bonds. The document discusses various types of fixed income investments including bonds issued by governments and corporations. It also covers concepts like bond yields, prices, and how yields are calculated based on interest rates and price fluctuations. Examples are provided to illustrate how to compute yields given the coupon rate, price paid, and maturity date of a bond.
Bonds and shares can be valued using various approaches such as book value, replacement value, liquidation value, and market value. Bond values are determined by factors like face value, interest rate, maturity, redemption value, and market yield. The yield to maturity considers interest payments and capital gains/losses, while current yield only considers annual interest. Duration measures a bond's price sensitivity to interest rate changes. The term structure of interest rates, as shown by the yield curve, can be normal upward sloping or inverted. The expectation, liquidity premium, and segmented markets theories seek to explain the typical upward sloping yield curve. Credit ratings factor in default risk.
The document explains the inverse relationship between bond prices and yields. It states that when bond prices go down, bond yields go up, and vice versa. This is illustrated with an example where one investor, Ravi, needs to sell his bond for an emergency. The buyer, John, purchases the bond at a lower price than Ravi paid. However, John earns a higher yield since he paid less for the bond that pays the same return. The example shows that when bond prices fall, the yields rise for new buyers, demonstrating the inverse relationship between the two.
This document discusses key topics related to bonds, bond valuation, and interest rates. It begins by outlining topics that will be covered in the chapter, including who issues bonds, bond characteristics, bond valuation, and determinants of market interest rates. The document then defines what a bond is and provides examples of different bond classifications. Several key bond characteristics are defined, such as par value, coupon payment, maturity date, call provisions, and sinking funds. The document also discusses bond valuation methodology and how bond prices are affected by changes in market interest rates. It provides examples to illustrate these concepts. The remainder of the document covers additional topics like bonds with semiannual coupons and different methods for calculating bond yields.
This document discusses key concepts related to bond valuation including:
1) The key features of bonds such as par value, coupon rate, maturity date, and default risk.
2) How bond valuation is calculated using the present value of future cash flows discounted at the required yield.
3) How the value of a bond changes as the required discount rate or expected yield changes, affecting whether it trades at a premium or discount.
This document discusses bond valuation and risk. It outlines the bond valuation process, which involves computing the present value of a bond's expected cash flows. Bond prices are related to the coupon rate and required rate of return. The sensitivity of bond prices to interest rate movements can be measured using concepts like bond price elasticity and duration. A bond's price duration estimates how much its market value will change as interest rates change.
Bond Valuation, Bond Types, Bond Characteristics, Reasons for issuing Bonds, Bond Risks, Bond Measuring Yield, Bond Pricing Theorems, Factors that Influence Bond Prices, Primary Bond Market, Secondary Bond Market, Bonds in Nepal.
Trade #1-6 describe various risk arbitrage situations involving mergers and acquisitions. A special situation is described that yields profit even if the market does not advance. Buffett's analysis of the Arcata Corporation buyout is summarized, including his valuation of the contingent claim and the outcomes.
The document then provides a general overview of risk arbitrage, explaining the four questions one must answer to evaluate such situations: the likelihood of the event occurring, the time commitment, the chance of a better outcome, and what would happen if the event does not occur. An annexure to Security Analysis is referenced.
Bond values can be discussed in terms of dollar price or yield to maturity, which are equivalent. Bond yields include the coupon rate, current yield, yield to maturity, modified yield to maturity, yield to call, and realized yield. Duration is a measure of bond price volatility that accounts for time to maturity and coupon payments. It indicates the sensitivity of price to changes in yield. Modified duration adjusts for the holding period yield. Convexity measures the curvature of the price-yield relationship.
BONDS, FEATURES OF BONDS, BOND VALUATION, MEASURING YIELD, ASSESSING RISK, TYPES OF LONG- TERM DEBT INSTRUMENTS, SERIAL BONDS, TYPES OF RISK, SEMI- ANNUAL BONDS, YIELD TO CALL, YIELD TO MATURITY, DEFAULT RISK & FACTORS AFFECTING DEFAULT RISK & BOND RATINGS, etc.
Tiberius was the second Roman Emperor, ruling from 14 AD to 37 AD. He was known for his weird fetishes when he retired to Capri. Caligula was the third Emperor and was known for his erratic behavior. Claudius was the fourth Emperor. Nero was the fifth Emperor, originally named Lucius Domitus Ahenobarbus. He passed laws allowing him to kill opponents, was blamed for starting the Great Fire of Rome, and was eventually forced to commit suicide. After the fire, Nero built the extravagant Domus Aurea palace.
Artiman Ventures - Venture Capital for its white space investment strategyArtiman Ventures
Artiman is an early stage venture fund based in Silicon Valley. We invest in white spaces companies, with no identifiable competitors, where we seek to create or disrupt multi-billion markets. We are sector agnostic and trans-disciplinary by design. Artiman is typically the first institutional capital, often at the concept phase. We work as active partners with our entrepreneurs, helping drive strategy, market definition and execution.
The document outlines Moscow's investment strategy from 2014-2025. The strategy aims to attract more private investment, improve Moscow's business environment and competitiveness, and increase GDP per worker. It identifies priority sectors like transport, healthcare, education, and new technology industries. The strategy involves measures to simplify regulations, develop public-private partnerships, and support projects in technology parks and infrastructure development to achieve goals of increasing total investments to $40 billion and private investments to 30% by 2025.
Skoufis Capital Active Investment StrategyPeter Skoufis
Skoufis Capital Management offers an actively managed investment program using the CAN SLIM strategy. The strategy seeks to outperform the market through high-conviction stock picking and flexible allocation shifts between stocks and cash depending on market conditions. The minimum investment is $250,000 and fees are 2%. Interested investors should contact Peter Skoufis directly to begin the application process.
Asset Management - Re-investment Strategy for Large Population of AssetsJan Schipper
This document discusses best practices for developing a large-scale asset replacement strategy. It summarizes a peer group study that assessed processes for replacement programs and found differences especially in risk assessment and portfolio optimization. The document advocates a two-stage selection process that involves both short-term navigation and long-term direction. It also describes using sophisticated skills, methods and tools to facilitate portfolio management.
PeopleSoft Keynote: PeopleSoft Investment Strategy and RoadmapCedar Consulting
Hear from Oracle about ongoing investment in PeopleSoft. From User Experience to Analytics and Functional Enhancements to deploying PeopleSoft on the Cloud this session conveys how Oracle continues to invest in PeopleSoft.
Making an investment, especially in early-stage businesses and SMEs, can be a difficult and even stressful process. The spreadsheets. The financial projections. The five-year business plans. The valuation models.
All of these factors, while undoubtedly important, can overshadow what really matters when determining which businesses you should invest in: the management team, market size, potential to scale, and who else has invested.
We at Eureeca would like to help you learn how to cut to the heart of what’s important when investing so you can start making smart investment decisions today.
Questions to be addressed:
How should you navigate the investment process?
What should you look for when assessing an investment opportunity?
How does the Eureeca platform improve the investment process?
Integrating ESG Into Investment Strategy: Risks and Opportunities. Presentati...Graham Sinclair
Presentation by SinCo on sustainable investment in Africa, promoting AfricaSIF.org.
InterContinental HOTEL & RESORTS, Lusaka - ZAMBIA | JANUARY 30 - 31, 2013 Zambia Pension Fund Investment Forum Charting a sustainable retirement and Pension funds Investment strategy
http://www.mncapital-group.com/past-event-detail.php?ref=zambia-pension-fund-investment-forum
The document provides guidance on creating an investment strategy for an SMSF as required by law. It outlines key points from legislation and the ATO including addressing risk, return, diversification and liquidity. The strategy should define objectives based on member details, set asset class ranges and risk profiles. Components include purpose, objectives, investment types for long and short-term, risk analysis for each asset class, and ensuring adequate diversification across the portfolio. Trustees must prepare a tailored strategy considering their specific fund and review it regularly.
Presents a Web 2.0 investment strategy for business and government that aims to help you outperform the market by investing at a lower cost. 3 sections: a) Web 2.0 and the enterprise overview, why it's much harder than most people think, b) the Web 2.0 Adoption Curve model, how the Web 2.0/social networking will have a correction in 2010, and how this can be an opportunity for you, c) how you can adopt Web 2.0 at a lower cost than your competitors and create competitive advantage
Investment strategy role of professionalsCA K Raghu
The document discusses investment planning and strategies for professionals in India. It notes that India has a growing middle class, large English-speaking population, and is the largest democracy and fastest growing major economy. It recommends that professionals provide value-added investment planning and strategy services to clients. It outlines various investment options and their features, risks, and benefits. It proposes a 5-point investment strategy including investing in tax-saving funds, large cap funds, restructuring portfolios, curbing enthusiasm, and getting sound advice.
This document provides investment recommendations for a client's qualified retirement account. It recommends a portfolio with a target allocation of 77.5% to fixed income investments like bonds and cash, 7.17% to domestic equities, 1.26% to real assets, and 14.07% to absolute return strategies. The portfolio aims to provide current income and some inflation protection while maintaining low volatility suitable for the account type. Historical returns are provided showing the recommended strategy has outperformed blended benchmarks over various periods since inception.
PRAA is a debt collection company that has seen strong revenue and earnings growth in recent years. It expects revenue to increase 22% to $574M in 2012 with EPS growing 33% to $7.96. The company has an integrated business model that allows it to profit at each stage of the collection process. While downside risks include a double-dip recession or regulatory changes, PRAA is well positioned for continued growth given its conservative operations and compliance practices. The analyst estimates the stock is undervalued at the current price based on a DCF valuation of $96 per share.
The document provides an overview of financial markets and recommends stocks to write naked puts on for the month of August. It notes continued issues in Europe from sovereign debt that are increasing volatility worldwide. Commodity prices like gold, copper and oil are rising despite signs of economic weakness. The recommendations focus on industrial and energy stocks that should endure current conditions. Specific stocks are highlighted along with their fundamentals, option details and analysis.
The document discusses key concepts related to stocks, bonds, interest rates, and their interrelationships. It provides examples of how changes in interest rates can affect bond and stock prices. Lower interest rates will increase bond prices and stock prices, while higher rates will decrease prices. The expectations theory holds that the long-term interest rate should equal the geometric average of the current short-term rate and expected future short-term rates over the term.
1) AEM provides natural gas management services including buying, storing, and transporting gas for customers using both owned and leased storage and transportation assets.
2) Accounting rules require AEM to mark physical gas in storage and related hedges to market monthly, creating unrealized gains and losses that introduce volatility to reported earnings.
3) To address earnings volatility from mark-to-market accounting, AEM discloses expected gross profit margins to investors, which better reflect underlying economic value.
Every month we publish just the stats from the newsletter, just the stats. That is why the release is called "Stats on Stats ETF" In this August 2016 release we cover the 6 Alpha returns and as well the Trend Alpha returns. Also we included the Robo Advisor returns and a list of Exchange Traded Funds from each sector that are currently trending with above average returns with in their respective asset class. The list also provides the only publicly available ratings system geared towards ETF's. The “Alpha Ranking System” which is generated by ETFInvests Algorithms.
The document is a research report from Wells Fargo Securities analyzing the midstream energy sector. It notes that US midstream stocks are up year-to-date while Canadian midstream is down, and discusses investors' interest in capturing commodity upside through midstream. However, it finds that due to fee-based contracts, there are few ways to gain meaningful direct commodity exposure through US midstream anymore. It identifies several midstream companies with over 5% commodity-driven cash flow and models the potential earnings impact of current commodity prices being sustained.
The rupee dropped 31 paise against the US dollar in morning trade due to demand from banks and importers. Traders say the rupee is lower tracking losses in Asian currencies and stocks, and the Reserve Bank of India's intervention will be watched. The daily forex report provides the rupee's movement against major currencies, trading tips, past performance of various currency pairs, and daily charts of USD/INR and EUR/INR. Upcoming economic data releases from the UK and US are also listed.
This document provides an overview and summary of a presentation on core deposit modeling. The presentation covers topics such as rate sensitivities in a rising rate environment, valuation of core deposits, sensitivity analysis from regulatory and best practice perspectives, liquidity concerns, and approaches to core deposit studies. The presentation was given by Bank Risk Advisors and covered current hot topics and best practices in core deposit modeling.
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2. Timing is everything
versus
timing is worthless
With almost every indicator
positively correlated, the
timing of buying and selling
securities demands a new
investment decision
strategy.
If all indicators are bullish
we can definitively state that
there is a very high
probability that they will
turn bearish, we just cannot
say when.
3. Trend lines go nowhere.
Performance tanks but
claims persist.
I
In this market every
strategy based on
predictive behaviour of
the market is doing
relatively poorly and at
the same time every
portfolio manager has
an index to measure
themselves favourably
against.
4. You are not in safe hands
The safe nest of
capital preservation is
cracked
The era of buy quality
assets and hold is over.
To maintain asset value
above the rate of inflation
demands an investment
strategy that was
previously defined as
‘excessively risky’.
To sit and wait for the
market to stabilize and
regain a firm secular
bullish trend is the new
’risk’.
5. Hedge funds not on a
roll
The hedge funds have not
performed well
Complexity of structured
products have not yielded
any market advantage
Multi-Strategy Hedge fund
Index for 2011 was under
water
6. A redefinition of risk
and uncertainty
As systems evolve, they get
more complex. (WTO, Euro
currency zone, BRICS)
As systems become more
complex they become more
unstable
As systems become more
unstable the components of
the system must become
more flexible
Therefore, new flexible
strategies are needed
7. A new investment
strategy An Iterative strategy
Technical trading will strate
not work.
Looking for trends will
only frustrate
Sitting on cash will
result in loses to
inflation.
Let the market come to
you. Find appropriate
strategies for particular
moments.
8. Make a series of short
term decisions
Do Not: hold
cash, predict the
economy, identify the next
disaster, chase the
market, follow the
cash, panic and/or despair.
DO develop strategies
that exploit volatility in a
no direction market and
protects your portfolio
from unnecessary risk. Be
liquid and ready for the
return of a secular boom.
9. RBC auto-callable
Notes are the
foundation investment
What are the RBC Auto-Callable Phoenix Notes:
features of these bank issued equity linked notes that are
not principal protected. They represent
bonds? senior, uninsured deposit obligations of
the Royal Bank of Canada.
Coupon payments, monthly or quarterly
Automatically callable at observation
periods depending on the performance of
the underlying assets
Conditionally principal protected at
maturity
11. Step 1: Select the
appropriate Bond
1: single , pairs, triples or
composite
2: term ; 8 months, year
18 months, or longer
3: coupon rate 10 to 20 %
4: floor: 50% to 80%
5. benchmark dates:
monthly quarterly,
6: redemption terms;
R
cash or kind
e
p
r
e
s
e
n
t
12. Three year range Rim ( red) is rejected
analysis of target Blue AAPL,WFC,MSFT,APPL,JPM
chip stocks
,GE,FCX,,CAT, AMZN, KO ,
VALE, PBR are accepted
13. Step 2: Multiple
purchases of WOF
callable Phoenix bonds
Guidelines :
1. Avoid duplication
2. Vary call dates and
terms
3. Diversify sectors
4. Include complements
in pairs or triplets
5. Purchase monthly
6. Diversify into
international markets
14. Step 3: Acquire leverage
from bank using WOF Bank leverage
Phoenix contract as
collateral
In order to increase the
rate of return, a
leveraging exercise is
critical.
Leveraged debt creates
currency hedge
15. Step 4: Use call spread option
strategy to exploit volatility to
maximize monthly return
Monthly/quarterly return
on portfolio of bonds assured
if contract above floor on
measurement day
If any stock is under water
as it approaches
measurement moment, an
option spread strategy is
implemented, to maximize
returns.
Option spread contract
collapsed once monthly
measurement date is passed
or wait until contract expires.
16. Negative Correlates
Step 5: Minimize risk of
capital loss at maturity of
WOF bond
As long as stock price at
maturity is above floor, 100%
capital returned
If stock is below
floor, purchase options of
negative correlate to cover
the potential loss at maturity
If market is in bear
cycle, then determine the
best fit; (gold, VIX
TBs, Euro/US) to include in
option purchase. Objective to
lose no more than 50% of
potential loss upon maturity.
22. Objective: to create a
$12 million BoB fund Prescription for Expansion
Benefits:
Choose bonds in primary
market
Diversify to targeted blue
chip stocks
Create new flexible contracts
with specific parameters
Lower commission fees
Generate higher profits