Understanding Fixed Income Securities
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A simple presentation targeted towards a common man, to enable him to ask himself the right questions before buying a bond.
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Interest Rate Options
http://www.options-trading-education.com/24091/interest-rate-options/
Interest Rate Options
In interest rate options trading traders are positioning themselves for a faster than previously expected rise in interest rates. As reported in Bloomberg, a faster rate rise is expected as evidenced by a change of the put to call ratio on interest rates from 1.9 to 3.2.
Options Wager
Investors in put options are betting that market participants will raise their expectations for the level of the federal funds rate in 2017. They are wagering that Fed policy makers meeting this week will forecast a higher rate at the end of 2017 than most investors now predict.
As of Sept. 10, there were 3.2 active put options for every active call option, according to data from CME Group Inc. That’s up from a ratio of 1.9 on the final day of the FOMC’s July 29-30 gathering.
Using short-term options on the contract allows traders to place a bet on a policy surprise from the Fed at a relatively low cost and limits the damage in case the trade doesn’t work out, because holders of the options can only lose as much as they paid for them.
The Federal Reserve is phasing out its quantitative easing stimulus program. The $85 billion a month purchase of bonds has been reduced and the general consensus is that it will be done by the next month. Federal Reserve officials have stated that they will keep interest rates low as long as it takes for the economic recovery to be secure. But, as employment figures rise speculation is that the Fed will push rates up soon rather than later. Interest rates options are a practical way to profit from such a move.
Interest Rate Options
An Interest rate option is a specific financial derivative contract. Its value is based is based on interest rates such as the yield on 10 year treasury notes. Just like with equity options one can purchase calls or puts. Traders purchases calls if they believe that rates will go up and puts if they believe that rates will fall. A useful reference is the CME Group Options Open Interest Rate Tool. Rate curves displayed include the following:
Eurodollar
1 Year Mid Curve
2 Year Mid Curve
3 Year Mid Curve
4 Year Mid Curve
5 Year Mid Curve
2 Year Note
5 Year Note
T bond
Ultra
As will all options trading it is smart to focus on one aspect of the market with which you are familiar in trading interest rate options.
Profitable Interest Rate Trading
There are many profitable options strategies that can be applied to interest rate options trading as well as trading other kinds of options. Basically interest rate options trading has to do with forecasting what the Federal Reserve will do with rates and other basic economic factors that tend to drive rates up and down. Short term interest rate options trading has to do with reading market sentiment using technical analysis tools in order to profit from the inefficiency inherent in all markets.
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Introduction To Fixed Income Markets
Understand the basics of Fixed Income Markets - For technology and non-technology professionals.
Interest Rate Options
http://www.options-trading-education.com/24091/interest-rate-options/
Interest Rate Options
In interest rate options trading traders are positioning themselves for a faster than previously expected rise in interest rates. As reported in Bloomberg, a faster rate rise is expected as evidenced by a change of the put to call ratio on interest rates from 1.9 to 3.2.
Options Wager
Investors in put options are betting that market participants will raise their expectations for the level of the federal funds rate in 2017. They are wagering that Fed policy makers meeting this week will forecast a higher rate at the end of 2017 than most investors now predict.
As of Sept. 10, there were 3.2 active put options for every active call option, according to data from CME Group Inc. That’s up from a ratio of 1.9 on the final day of the FOMC’s July 29-30 gathering.
Using short-term options on the contract allows traders to place a bet on a policy surprise from the Fed at a relatively low cost and limits the damage in case the trade doesn’t work out, because holders of the options can only lose as much as they paid for them.
The Federal Reserve is phasing out its quantitative easing stimulus program. The $85 billion a month purchase of bonds has been reduced and the general consensus is that it will be done by the next month. Federal Reserve officials have stated that they will keep interest rates low as long as it takes for the economic recovery to be secure. But, as employment figures rise speculation is that the Fed will push rates up soon rather than later. Interest rates options are a practical way to profit from such a move.
Interest Rate Options
An Interest rate option is a specific financial derivative contract. Its value is based is based on interest rates such as the yield on 10 year treasury notes. Just like with equity options one can purchase calls or puts. Traders purchases calls if they believe that rates will go up and puts if they believe that rates will fall. A useful reference is the CME Group Options Open Interest Rate Tool. Rate curves displayed include the following:
Eurodollar
1 Year Mid Curve
2 Year Mid Curve
3 Year Mid Curve
4 Year Mid Curve
5 Year Mid Curve
2 Year Note
5 Year Note
T bond
Ultra
As will all options trading it is smart to focus on one aspect of the market with which you are familiar in trading interest rate options.
Profitable Interest Rate Trading
There are many profitable options strategies that can be applied to interest rate options trading as well as trading other kinds of options. Basically interest rate options trading has to do with forecasting what the Federal Reserve will do with rates and other basic economic factors that tend to drive rates up and down. Short term interest rate options trading has to do with reading market sentiment using technical analysis tools in order to profit from the inefficiency inherent in all markets.
Collateral Management
Collateral management has moved to the top of the agenda for many institutions as a tool to help mitigate credit risk and manage liquidity. This approach has mainly been driven by regulatory changes such as Basel III, Solvency II and G20 requirements pertaining to the central clearing of over the counter (OTC) derivatives. Basel III will require banks to hold more capital against their uncollateralised exposures, which will force more banks to increase their collateral requirements with clients. In turn, financial institutions will have to find the most efficient way for managing their collateral to manage liquidity as uncollateralised trades will become more expensive due to the CVA requirements.
The Hedge Fund Academy will explore the impact proposed regulatory changes will have on collateral management and liquidity requirements for the whole South African Market. Implementing a collateral management process can be challenging and implementing an insufficient collateral management system and process may even result in much greater losses.
Stock Valuation
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Zero Growth Model
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Constant Growth Model
Two-stage growth Model
Feel Free to comment.
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This presentation deals with exchange rate quotations, common currency symbols, direct and indirect quotes, American terms, European terms, cross rates, Bid and Ask rates, Mid rate, Spread and its determinants, Spot markets, Forward Markets, Premium and Discounts, various practices of writing quotations, calculating broken period forward rates, Speculation and arbitrage, Forex futures and Currency Options.
Fixed income securities- Analysis and valuation
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
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Collateral Management
Collateral management has moved to the top of the agenda for many institutions as a tool to help mitigate credit risk and manage liquidity. This approach has mainly been driven by regulatory changes such as Basel III, Solvency II and G20 requirements pertaining to the central clearing of over the counter (OTC) derivatives. Basel III will require banks to hold more capital against their uncollateralised exposures, which will force more banks to increase their collateral requirements with clients. In turn, financial institutions will have to find the most efficient way for managing their collateral to manage liquidity as uncollateralised trades will become more expensive due to the CVA requirements.
The Hedge Fund Academy will explore the impact proposed regulatory changes will have on collateral management and liquidity requirements for the whole South African Market. Implementing a collateral management process can be challenging and implementing an insufficient collateral management system and process may even result in much greater losses.
Stock Valuation
The presentation slide is on stock valuation. We have tried to present the various techniques to stock valuation under which different methods are discussed with illustrations. Key concepts:
Zero Growth Model
Balance sheet Technique
Constant Growth Model
Two-stage growth Model
Feel Free to comment.
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Futures, Options & Swaps.
Their use for hedging & speculation purposes.
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Probably the first individual stocks that I had were ones that… I inherited a small portfolio from my grandmother, who was one of those “millionaires next door”, a teacher who, just over time, had invested in the market in strong companies, and built up a portfolio.
I am Catherine Collins-Lang. After practicing law for a while, I went into private investment management. Those stocks, which at the time, were the sort of blue chip stocks… I inherited those, and I quickly sold off all of those at a loss, that were at a loss in the telecommunication industry, since this was in 2000, 2001, when those were down, to harvest those losses against some gains I had in my business.
But I’ve kept the other blue chip stocks over time, and I’ve just let those accrue, and they’ve grown significantly. And I look forward to that funding some of my children’s college education. And those have been your basic blue chip stocks; your Johnson & Johnson, your General Electric, your Exxon-Mobil, which has been a huge winner over the past 20 years.
So, that’s the first individual stock portfolio that I personally had. An individual investor should never lose sight of the fundamental nature of the stock market, in that it is simply a pairing of a seller and a buyer. With respect to stock, it’s really understanding what a stock is and what it represents, and then how that may differ from how it trades, so understanding that a stock is really a tiny portion of ownership of a company, and it will trade at the residual value after all the obligations of that company are paid off. That’s the value that’s left of the company.
Debt, on the other hand, or a bond, is really just a contract that you have made with a company that has very specific terms. It has a set time period – it’s a 10-year note, it’s a 30-year note – and during that time period, the cash flows you will receive are set. It’s a 5% interest payment, it’s a 10% interest payment, and then, at maturity you will get your capital, or your principal, back.
If the company goes down to a quarter of what it was before, you still have the right to that contractually-arranged return of principal and the interest, and you are going to get paid before anybody who owns the stock gets paid. So, it goes both ways; so, there’s less risk in it, but there’s also less upside because you’ve got a contract, you don’t have an ownership right.
A stock is fundamentally more difficult to value than a bond because it’s less quantitative. There are more qualitative factors that are going to go into the evaluation of a stock, more assumptions you have to make. And the more you make assumptions, the more people can differ.
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A. If StayDry has zero debt and 50,000 outstanding shares, what will its EPS (earnings per share) be if there is normal rain? What will its EPS be if there is a drought? What is its DFL (degree of financial leverage)?
B. Now suppose StayDry has decided to take on $300,000 in debt and has used these funds to buy back half of the outstanding shares so now there are only 25,000 outstanding shares. What is the new EPS and DFL for both normal rain and drought?
C. Based on your answers to a) and b) above, what are the trade-offs management has to make between zero debt or $300,000 in debt? What are the benefits and disadvantages of taking on this debt?
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how to sell pi coins effectively (from 50 - 100k pi)
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
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debuts.
I'll provide you the Telegram username
@Pi_vendor_247
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how can i use my minded pi coins I need some funds.
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
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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.
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Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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what is the best method to sell pi coins in 2024
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
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where can I find a legit pi merchant online
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
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how to sell pi coins effectively (from 50 - 100k pi)
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how can i use my minded pi coins I need some funds.
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