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Top Stories |
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Former Vitol Traders, Tudor Manager Plan Commodity Hedge Fund
Source: Bloomberg
Pierre Andurand, a former oil trader at Vitol Group, and Julian
Reis, the previous chief executive of Tudor Investment Corp.'s
Singapore unit, plan to start a hedge fund to trade commodity
derivatives.
More...
Baer plans $250 mn hedge fund
Source:
Business Standard
Private equity player Baer Capital Partners plans to launch $
250 million India-dedicated hedge fund by the year-end. Baer
Capital is the first hedge fund to announce its India plans,
after the recent proposal by the Securities and Exchange Board
of India allowing direct entry of hedge funds.
More...
Hedge vehicle stalls after breach
Source: The Australian
A $US6.6 billion ($8.16 billion) investment vehicle run by
Cheyne Capital, a London hedge fund, yesterday became the latest
victim of the crisis in short-term lending markets when it told
investors it had breached funding restrictions, forcing an
eventual wind-down.
More...
London hotel may become private home
Source: The International Herald Tribune
Chris Rokos, a partner at U.K. hedge fund Brevan Howard Asset
Management, plans to transform a dilapidated former hotel in
Kensington into a luxury 10-bedroom home for his family.
More...
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Stories continued below... or
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Term of the Day & Related News |
Junk Bonds
In finance, a
high-yield bond (non-investment grade bond or junk bond) is a
bond that is rated below investment grade, i.e. below BBB- by
Standard & Poor's (S&P) or Baa3 by Moody's. These bonds have a
higher risk of defaulting, but typically pay high yields in
order to make them attractive to investors.
When analyzing the risk of a high-yield bond, it is important to
keep in mind that the expected return from a basket of high
yield bonds should approximate that of a similarly diversified
list of high grade bonds. The low-rated bonds offer higher
promised returns but have a higher expected probability of
default, which means that a greater proportion of their expected
return comes from interest payments rather than principal. As a
result, they are less sensitive to interest rate swings,
allowing a high-risk company to more easily refinance its debt
even if interest rates have increased.
More...
Related News:
After the credit
crunch, a rush to 'junk'
Source:
The International Herald Tribune
For all the panic about a global credit crisis that
created the biggest rush to buy U.S. Treasury bills in
two decades, high-yield, high-risk bonds may prove to be
the best investment in the debt market.
That, at least, is what some major investment firms are
telling their customers.
More...
What are junk bonds?
Source:
The Courier-Journal
The more polite term, used by credit-rating agencies, is
"speculative grade." More attractive bonds are called
"investment grade."
But in the common vernacular, junk bonds carry a higher
risk that the company won't be able to make its interest
and/or principal payments. In exchange for the increased
risk, the bonds pay a higher interest rate.
More... |
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Scholarly Article & Related News |
Fixed Income Pricing
by Qiang Dai
& Kenneth Singleton
This chapter surveys the literature on fixed-income pricing
models, including dynamic term structure models (DTSMs) and
interest rate sensitive, derivative pricing models. This
literature is vast with both the academic and practitioner
communities having proposed a wide variety of models and
model-selection criteria. Central to all pricing models,
implicitly or explicitly, are: (i) the identity of the state
vector: whether it is latent or observable and, in the
latter case, which observable series; (ii) the law of motion
(conditional distribution) of the state vector under the
pricing measure; and (iii) the functional dependence of the
short-term interest rate on this state vector...
More...
Related News:
Bear hands Asian
brief to European fixed income boss
Source:
FinancialNews-US.com
Bear Stearns is shifting a top aide of European chief
executive Michel Péretié to a new role overseeing its
growing Asian business less than a year after he was
appointed co-head of fixed income in Europe.
More...
Southwest Securities
Opens Fixed Income Office in Bloomfield, New Jersey
Source:
CNNMoney.com
Southwest Securities, Inc. has opened a fixed income
office in Bloomfield, N.J. with 13 professionals and
capacity to double in size.
Under the management of David Edgar, who has more than
25 years of sales and trading experience in the fixed
income markets, the office specializes in serving the
needs of financial depositories. In addition to agencies
and mortgage-backed securities, the office transacts
business in bank qualified municipal bonds.
More... |
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Top Stories by Category |
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Book of the Day & Related News |
Book Description
Two pioneers and innovators in the money
management field present their choice of
groundbreaking, peer-reviewed articles on
subjects including portfolio engineering and
long-short investment strategy. More than
just a collection of classic review pieces,
however, Equity Management provides new
material to introduce, interpret, and
integrate the pieces, with an introduction
that provides an authoritative overview of
the chapters. Important and innovative, it
is destined to become the "Graham and Dodd"
of quantitative equity investing. |
The Long and the
Short of 130/30s
Source:
On Wall Street
Popular for a while among institutional investors and
selectively available to wealthy clients through
separately managed accounts (SMAs), 130/30 portfolios
have had little exposure to less affluent retail
investors in the past. But that's changing. Now
quantitative equity fund managers are looking to get a
piece of this action, pitching this strategy-basically a
leveraged bet on the managers' stock-picking skills-to
mutual fund investors.
More...
Beware Misuse Of
Funds That Short
Source:
CNNMoney.com
Fund firms are rolling out more mutual funds that short.
But investors should beware of what they can and cannot
do.
Several firms have rolled out so-called 130/30 funds.
Their nickname comes from the fact that, on average, 30%
of their assets are borrowed and/or shorted. They
reinvest borrowed money in long positions.
More...
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Personal Interest |
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New Orleans grieves
those lost to Katrina
Source:
IOL
New Orleans will mark the second anniversary of
Hurricane Katrina on Wednesday with candlelight vigils,
prayer services and a new memorial to the 1 500 or so
people who died in her floodwaters and fury.
More...
Google CFO to Retire
At Age 53
Source:
ABC News
Google Inc.'s chief financial officer will retire by the
end of the year, creating the most prominent job opening
at the Internet search leader since it went public three
years ago.
More...
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