Fixed Coupon Note: High Returns And Low Risk
Fixed Coupon Note: High Returns And Low Risk

Author: Rajiv Aggarwal

Publisher: World Scientific

Published: 2020-11-13

Total Pages: 172

ISBN-13: 9811225052

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Equities are generally perceived to be more volatile than fixed income investments. Many risk averse investors are unable to digest the daily ups and downs in the prices of equities. They also feel that, from a historical perspective, equities are overpriced and thus are not comfortable taking equity positions at current valuations.On the other hand, global interest rates have been on a decline from the 1970s when inflation was finally under control by central banks. This decline in interest rates means that investors have to live with lower nominal returns. Since the Global Financial Crisis of 2008, many investors have been feeling left out of the equity markets.Fixed Coupon Notes (FCNs) are quasi-equity and quasi-bond structures which aim to provide higher returns than bonds with lower risks compared to equities. Moreover, they also provide an avenue to enter equities at reasonable prices and acceptable valuations. Being the most popular structured product in Asia, there is sufficient institutional experience about the product. This book aims to provide the basics as well as the nuances of investing in FCNs so that an investor not only understands the concepts behind the product, but is also able to avoid common pitfalls.

How to Invest in Structured Products
How to Invest in Structured Products

Author: Andreas Bluemke

Publisher: John Wiley & Sons

Published: 2009-09-15

Total Pages: 406

ISBN-13: 0470746793

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This book is essential in understanding, investing and risk managing the holy grail of investments - structured products. The book begins by introducing structured products by way of a basic guide so that readers will be able to understand a payoff graphic, read a termsheet or assess a payoff formula, before moving on to the key asset classes and their peculiarities. Readers will then move on to the more advanced subjects such as structured products construction and behaviour during their lifetime. It also explains how to avoid important pitfalls in products across all asset classes, pitfalls that have led to huge losses over recent years, including detailed coverage of counterparty risk, the fall of Lehman Brothers and other key aspects of the financial crisis related to structured products. The second part of the book presents an original approach to implementing structured products in a portfolio. Key features include: A comprehensive list of factors an investor needs to take into consideration before investing. This makes it a great help to any buyer of structured products; Unbiased advice on product investments across several asset classes: equities, fixed income, foreign exchange and commodities; Guidance on how to implement structured products in a portfolio context; A comprehensive questionnaire that will help investors to define their own investment preferences, allowing for a greater precision when facing investment decisions; An original approach determining the typical distribution of returns for major product types, essential for product classification and optimal portfolio implementation purposes; Written in a fresh, clear and understandable style, with many figures illustrating the products and very little mathematics. This book will enable you to better comprehend the use of structured products in everyday banking, quickly analyzing a product, assessing which of your clients it suits, and recognizing its major pitfalls. You will be able to see the added value versus the cost of a product and if the payoff is compatible with the market expectations.

Risk and Rates of Return
Risk and Rates of Return

Author: Maximilian Wegener

Publisher: GRIN Verlag

Published: 2013-05-29

Total Pages: 16

ISBN-13: 3656431620

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Seminar paper from the year 2012 in the subject Business economics - Investment and Finance, grade: 9.0, Maastricht University (SBE), course: Intermediate Financial Management, language: English, abstract: In 1996, Northern Electric and Mid-Continent Gas merged into the North Central Utilities (NCU) since both companies were convinced that future success is dependent on the provision of an entire set of energy sources. Furthermore the merger put both firms in a better position compared to their competitors, especially in view of the fact that in 1996, regulatory changes empowered companies to compete for business in other firm’s territories. Beforehand, competition basically did not exist and the profits were determined easily. Companies knew the amount of capital invested, the cost of capital and the product of those two demonstrated the profits, which had to be generated. In the following case, several questions will be answered to the changing conditions in the utility industry....

Optimization and Applications
Optimization and Applications

Author: Milojica Jaćimović

Publisher: Springer Nature

Published: 2020-01-08

Total Pages: 515

ISBN-13: 3030386031

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This book constitutes the refereed proceedings of the 10th International Conference on Optimization and Applications, OPTIMA 2019, held in Petrovac, Montenegro, in September-October 2019. The 35 revised full papers presented were carefully reviewed and selected from 117 submissions. The papers cover such topics as optimization, operations research, optimal control, game theory, and their numerous applications in practical problems of operations research, data analysis, and software development.

Introduction to Fixed Income Analytics
Introduction to Fixed Income Analytics

Author: Frank J. Fabozzi, CFA

Publisher: John Wiley & Sons

Published: 2001-05-15

Total Pages: 354

ISBN-13: 9781883249946

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The expanding variety of fixed income vehicles, in addition to their increasing intricacy, has generated difficulties for finance managers and investors in determining accurate valuations and analyses. Introduction to Fixed Income Analytics has proven to be today's most complete reference on the subject through its revolutionary insights into the time value of money and its techniques for estimating yield volatility, as well as for analyzing valuations, yield measures, return, risk, and more.

Foundations of High-Yield Analysis
Foundations of High-Yield Analysis

Author: Martin S. Fridson

Publisher: CFA Institute Research Foundation

Published: 2018-08-27

Total Pages: 92

ISBN-13: 1944960546

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Since the advent some 40 years ago of a vibrant primary market for speculative-grade corporate bonds, the high-yield market has evolved from a niche occupied by a small group of specialists into a full-fledged institutional investment category. Asset allocators and portfolio managers now have at their disposal the tools necessary for rigorous investment analysis, including financial statements of the issuers, indexes, trading prices, historical default rates, and time series on such credit factors as liquidity, ratings, and covenant quality. This research brief provides up-to-date techniques for extracting from the extensive data the information that can lead to sound investment decisions.

Bonds
Bonds

Author: Hildy Richelson

Publisher: John Wiley & Sons

Published: 2010-05-25

Total Pages: 417

ISBN-13: 0470885173

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In Bonds: The Unbeaten Path to Secure Investment Growth, Hildy and Stan Richelson expose the myth of stocks' superior investment returns and propose an all-bond portfolio as a sure-footed strategy that can ensure results. The book is designed to educate novice and sophisticated investors alike and serve as a tool for financial advisers as well. It explains why bonds can be the right choice and how to use them to achieve financial goals. It presents a broad spectrum of bond-investment options, describes how to purchase bonds at the best prices, and most important, shows how to make money with bonds. The bond strategies presented in this book are used by the wealthiest investors and financial advisers to maximize the return on their portfolios while providing security of principal. These strategies can help you determine how to use bonds in your portfolio and take control of your financial destiny. You'll be playing it smart while playing it safe. Silver Medal Winner, Axiom Business Book Awards (2008) Silver Medal Winner, Independent Publishers Book Award (IPPYs) (2008) Silver Medal Winner, Advertising/Marketing/PR/Event Planning Category, Axiom Business Book Awards (2008)