Sentences with phrase «derivatives risk exposure»

Not exact matches

The fund can invest in securities that may have a leveraging effect (such as derivatives and forward - settling securities) that may increase market exposure, magnify investment risks, and cause losses to be realized more quickly.

Our use of derivatives may increase the risks of investing in the fund by increasing investment exposure (which may be considered leverage) or, in the case of many over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and failure of the other party to the instrument to meet its obligations.

Instead of regulators forcing the unruly bank to pare back its exposures, its tally today of $ 55.6 trillion shows it has been allowed to grow its derivative risks by 35 percent.

For the unhedged fund, currency exposure is typically unhedged however currency derivatives may be used with equity index futures in managing cash flows or to manage active currency positions relative to the benchmark for risk management purposes.

Risks associated with derivatives (including «short» derivatives) include losses caused by unexpected market movements (which are potentially unlimited), imperfect correlation between the price of the derivative and the price of the underlying asset, increased investment exposure (which may be considered leverage), the potential inability to terminate or sell derivatives positions, the potential need to sell securities at disadvantageous times to meet margin or segregation requirements, the potential inability to recover margin or other amounts deposited from a counterparty, and the potential failure of the other party to the instrument to meet its obligations.

Use of leverage obtained through derivatives increases these risks by increasing investment exposure.

The Fund's exposure to derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other investments.

The use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.

Some of those risks include general economic risk, geopolitical risk, commodity - price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high - yield bond exposure, noninvestment - grade bond exposure commonly known as «junk bonds,» index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.

This just highlights the risk involved with esoteric asset classes, where the «cheap» way of getting the exposure comes through credit or derivative agreements.

Counterparty risk may be lower with synthetic ETFs traded on the AQUA market, as Australian Securities Exchange (ASX) requirements restrict the aggregate money owing under derivatives contracts (counterparty exposure).

I know things are bad, and I can't vouch for Institutional Risk Analytics» risk based capital model for banks, but the level of notional derivatives exposure at many of the major banks to their tier 1 surplus made me paRisk Analytics» risk based capital model for banks, but the level of notional derivatives exposure at many of the major banks to their tier 1 surplus made me parisk based capital model for banks, but the level of notional derivatives exposure at many of the major banks to their tier 1 surplus made me pause.

Also, the smaller denominations in which ETFs trade relative to most derivative contracts can provide an accurate risk exposure match for portfolios of any size.

The higher the derivative counterparty exposure level, the greater the proportion of the ETF's value that will be exposed to counterparty risk.

It also describes the use of derivatives in order to control risk exposures.

Our use of derivatives may increase the risks of investing in the fund by increasing investment exposure (which may be considered leverage) or, in the case of many over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and failure of the other party to the instrument to meet its obligations.

Throughout 2008, tremendous growth of a relatively new derivative instrument has been witnessed, that enables investors and portfolio managers to gain immediate exposure to property or hedge property risk without buying or selling property.

Derivatives will be introduced to mitigate the exposure to the risk of volatilities for the users of Kyber Network Crystals (KNC) and selected cryptocurrencies.

Accelerate reduction of single - family credit risk exposure by way of primary mortgage insurance and credit derivative and subordinated interest sales;