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Special Report on

Portfolio insurance and synthetic securities

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The cost and difficulty of simultaneously and continuously participating in all markets make it essential for investors to have intermediaries. Aside from acting as principals, these intermediaries also act as repositories of information about investors' unexpressed demands. It is assumed that the brokers and dealers who are privy to this kind of information are those who operate in the upstairs market but not those in the downstairs market. The downstairs market is the market where trading is done publicly in a central location while the upstairs market involves private trading. The information possessed by upstairs ...
on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the transaction itself. This entity is known as the reference entity and may be a corporate, a sovereign or any other form of legal entity which has incurred debt. 1 Credit derivatives are bilateral contracts between a buyer and seller under which the seller sells protection against the credit risk of the reference entity. 1 Stated in plain language, a credit derivative is a wager, and the reference entity is the thing being wagered on. Similar to placing a bet at the racetrack, where the person ...
Tax Day Tea Party Chicago | Tax Software
Those of you who followed Nouriel Roubini, during the currency crisis * Asia a decade ago and should have recognized the similarity between this crisis. Roubini was interviewed recently and gave his opinion: "U.S. has been living in a situation of excess for too long. Consumers were spending more of their income and the country was spending more of their income, which accumulated large current account deficit. Now we shall scrimp and save more. The problem is that a higher savings in the medium term are positive, but in the cut short-term consumer consumption causes the most severe economic contraction. That is the paradox of ... market research, surveys and trends
interfluidity » Synthetic securities are not so strange
If you hold a commodity ETF or a equity ETF that tracks its benchmark via futures, you hold a synthetic security. Like a synthetic CDO, commodity and equity ETFs are investment vehicles that hold very vanilla “collateral securities” (like Treasury bills), but simulate exposure to some other thing by taking positions in derivative markets. For example, if you were to purchase the PowerShares DB Agriculture ETF ( DBA ), you would hold an interest in an entity that holds T-bills and takes futures positions in commodities like corn, wheat, and sugar. Despite the fact that this entity is synthesized in part from ... market research, surveys and trends


The Son of Portfolio Insurance | Doug Noland |
It was a mixed week in the equity market, with the more speculative stocks and groups again outperforming the blue chips. For the week, the Dow shed almost 3%, while the S&P500's loss was a much more modest 1%. The Morgan Stanley Consumer index declined about 1%, the Transports fell 2%, and the Morgan Stanley Cyclical index dropped 3%. The Utilities were largely unchanged. The broader market was relatively flat, with the small cap Russell 2000 and the S&P400 Mid-Cap index both with fractional gains. Technology stocks enjoyed another week of gains, with the NASDAQ100 and the Morgan Stanley High Tech ... industry trends, business articles and survey research
Stocks, Bonds, Options, Futures, And Portfolio Insurance: A Rose ...
Trading volume and open interest in options and futures contracts on stock indices, equities, and interest rate instruments traded on world exchanges have experienced remarkable growth. From 1986 through 1991, the open interest in exchange-traded derivatives grew by 36 percent per year, reaching $3.5 billion at the end of 1991. The notional principal of financial derivatives traded in the even larger over-the-counter market (mostly on interest rates, in the form of swaps, forward agreements, and option-like caps, collars, and floors) grew at an annual rate of 40 percent.(1) This rapid growth has been accompanied by controversy ... industry trends, business articles and survey research
BUYINS.NET: AGN, PFG, VRX, HOLX, OSK, RBC Expected To Be Higher After Earnings ...
Jul 30, 2010 (M2 PRESSWIRE via COMTEX) -- BUYINS.NET / is monitoring the performance of all stocks with earnings being released Monday, August 2nd and determining how the stocks have performed after their last 12 quarterly, 6 quarterly and August earnings reports. Allergan Specialty Therapeutics (NYSE: AGN), Principal Financial Group (NYSE: PFG), Valeant Pharmaceuticals (NYSE: VRX), Hologic (NASDAQ: HOLX), Oshkosh Corp (NYSE: OSK) and Regal-Beloit (NYSE: RBC) are all expected to be higher after their earnings are released Monday. The movement of stock prices in the days and weeks leading to and following ... market trends, news research and surveys resources
Sun Life Financial reports second quarter results
Second quarter 2010 financial highlights - Net income of $213 million, compared to a net income of $591 million in the second quarter of 2009 - Earnings per share (diluted) of $0.37, down from earnings per share of $1.05 in the second quarter of 2009 - Return on equity of 5.4%, down from 14.9% in the same period one year ago - Quarterly dividend of $0.36 per share TORONTO , Aug. 4 /PRNewswire-FirstCall/ - Sun Life Financial Inc.(1) (TSX/NYSE: SLF ) reported net income of $213 million for the second quarter of 2010, compared with net income of $591 million in the same period last ... market trends, news research and surveys resources


Speech: The Growth of the Synthetic Derivative Market: Risks and ...
available information concerning the financial and securities activities ... Portfolio insurance strategies called for the selling of stocks or futures ... technology research, surveys study and trend statistics
Can also create portfolio insurance with calls and T-bills: ... If you buy stock , buy put, and write call, you get a synthetic bill. ... This is the sense in which we have engineered one security by combining others. ... technology research, surveys study and trend statistics
Question about Synthetic MBS CDOs? - Yahoo! Answers
After investigating the problems with toxic assets, it appears that most of the major problems occurred with synthetic mbs cdos. The reason that it appears that the major problem exists with synthetic mbs cdos is that last summer Merrill Lynch sold $30 billion worth of super senior tranches for $5.5 billion or 22 cents on the dollar. Merrill Lynch also financed $4 billion of the deal. A super senior tranche is part of a synthetic cdo and not part of a standard cdo so it appears that the problem lies with the synthetic cdo. Apparently the problem with synthetic cdos is that the super senior tranche is unfunded/unhedged. After ...
What is the profile of analysts at brokerage firms come up with ...
I am doing research for a book I am writing. I am trying to get a profile of the people hired by large firms who determined sub-prime mortgage backed securities would be a good investments for their firms and their firms clients. What was the reasoning and rationale they used? What is their experience and educational profile? Does anyone know of a web site that would have statistics on this subject? posted 3 months ago in Equity Markets , Government Services | Closed Share This They mortgage backed securities (which include sub-prime mortgages) were rated as an investment grade security by the rating agencies. Rating Agencies ...