Sentences with phrase «hedging against the risk of»

The term «hedge fund» comes from the idea of hedging against the risk of losing money, or using investment strategies that can make money in any economic environment.

Having a portion of your portfolio in intermediate TIPs may provide an extra hedge against the risk of rapid inflation increases, exactly because such increases are currently unexpected.

This year Goldman is packaging hybrid FX derivatives that allow clients to hedge against a risk of dollar - denominated interest rates remaining low.

Li is one of hundreds of millions of Chinese farmers who are now using insurance as a tool to hedge against the risks of climate change.

«Whether the strategy is to capitalize on a trend or hedge against the risk of a decline, magnified exposure means the investor can commit half the dollars to potentially obtain the desired level of exposure.

We hold cash when there is nothing better to do, and we hedge against the risk of a dramatic and sustained downturn in the market.

It has a diversified product portfolio, which is a hedge against the risk of sales shortfall in testing times.

For example, an investor might purchase a put option (the right to sell a stock at a set price) to hedge against the risk of a stock they own moving sharply down.

The idea behind the rule creating QLACs is to give people a way to generate retirement income and hedge against the risk of outliving their nest egg while putting up less money than they would have to with an immediate annuity.

In addition, higher levels of cooperative investment in RD&D in low carbon energy technologies and solutions would hedge against the risks of under - delivery in key mitigation areas such as energy efficiency and preventing deforestation.

2d 792, No. 08 - 964 (2010)(LII), in which all nine judges agreed that there should be no patent for a method by which commodities traders in the energy market could hedge against the risk of price changes.

Moreover, doctrinal entrenchment is particularly problematic in the FISA courts, where secrecy and institutional context indicate that outside efforts at doctrinal reform are less likely to be effective than they are with courts that publish their opinions.35 Unlike published opinions, secret opinions can not provoke the public into lobbying for a legislative override36 or judicial overruling37 — two important paths of legal reform.38 Perhaps to hedge against the risks of limited external oversight, FISA limits FISC and Court of Review judges to non-renewable, seven - year terms, 39 a provision suggesting that Congress envisioned a FISA court whose membership would be responsive to shifting factual circumstances and policy priorities.40 Stare decisis, which requires judges to adhere to interpretations of law that they might otherwise reject as unjust or unpersuasive, constrains these judges» ability to adapt to such factual and policy shifts.

While this coverage is typically associated with advisors such as accountants and consulting firms, many different types of small businesses carry this coverage to hedge against the risk of a law suit.

Renters insurance isn't just a hedge against the risk of «life» happening.

Reinsurance is nothing more than insurance bought by an insurance company to hedge against the risk of a significant claims event such as a hurricane.

It's a risk management tool, often used in financial markets to hedge against the risk of changing prices of assets that are bought and sold on a regular basis.

In the commodities markets, farmers deal in futures as a hedge against the risk of falling prices in the commodity they produce (say, corn) while, on the other side of the equation, companies like airline operators deal in futures to hedge against the risk of an increase in the price of fuel for their aircraft.

The lower court found this invention — which «simply provides the formula, or manner, in which to use an electronic intermediary to exchange obligations as a way to hedge against the risk of loss» — abstract and therefore unpatenable.

Not exact matches

The four conglomerates originated in different sectors, but their underlying business model is the same: cultivate powerful allies in the Communist Party; use those relationships to win regulatory and property concessions; gather investment from friends, family and other proxies of party elites into a murky, unregulated private holding company; borrow heavily from state - owed banks and other sources to finance prodigious growth plans; invest as aggressively as possible in stock and property overseas as a hedge against slower growth in China and the risk of a weaker Chinese currency.

A growing number of ETFs hedge against this currency risk, including iShares Currency Hedged MSCI United Kingdom (hewu), which tracks large - and mid-cap U.K. companies, and iShares Currency Hedged MSCI Spain (hewp), which focuses on large - cap companies.

To truly hedge your portfolio against all kinds of risk, a fully diversified precious metals allocation is your best bet.

While government bonds currently produce little in the way of income, government bonds have been providing a hedge against equity risk.

Last week, Ray Dalio, founder of Bridgewater Associates, the largest hedge fund in the world, said it was time for investors to put between 5 and 10 percent of their portfolio in gold as a precaution against global and domestic geopolitical risks.

A large part of the reason has been that bonds have provided an effective hedge against equity risk.

The main purpose behind holding these options is hedging a portfolio against significant negative movement in the value of US equities, commonly referred to as tail risk.

Working people with little disposable cash who are nervous about the condition of the global economy can hedge against instability, systemic risk and currency debasement by acquiring a small allocation of silver.

Proxy advisor Institutional Shareholder Services considers hedging and pledging a failure of risk oversight sufficient to warrant possible votes against directors, a committee or the entire board.

It is not used to shift or hedge any economic risk or as a bet against FedEx shares and, therefore, does not create any misalignment of management and stockholder interests.

I also discussed in Article 8.3 that Treasury Inflation Protected Securities (TIPS) bonds are likely to provide a particularly good hedge against the true risk of unexpected inflation rate increases.

So, in order to hedge against that risk, a supplier of oil may wish to gain some insulation from the price swings inherent to oil and sell a futures contract.

As stocks soar and the risk of a correction grows, it makes sense to add more cash to your portfolio to hedge against a possible downturn.

Of course, individual companies have headaches hedging against their specific currency risks.

Futures are regularly used to hedge against risk for a specific period of time and can be traded with leverage.

Toward the goal of clean capital markets, in 2004 Byrne began a vigorous citizen - journalist campaign focusing on regulatory capture, hedge fund mischief, settlement system failures, systemic risk, and the possibility of economic warfare against the US by organized crime and foreign governments.

In a matter of minutes, the CHF currency surged by 19 % against the Euro taking out many currency traders and even several brokers who had not adequately hedged their risk.

With geopolitical risk at the forefront of discussion again, here are the ways the world's billionaire investors are hedging against potential black swans.

While government bonds currently produce little in the way of income, U.S. Treasuries have been providing a hedge against equity risk.

It's proving itself as a top performer in terms of leverage, risk - aversion, and a hedge against inflation.

, Michelle Barnes, Zvi Bodie, Robert Triest and Christina Wang evaluate the progress of the TIPS market toward providing: (1) consumers with a hedge against real interest rate risk; (2) holders of nominal bonds with a hedge against inflation risk; and, (3) everyone with a reliable indicator of expected inflation.

The words are a useful hedge against an unexpected economic stumble, but they are above all an implicit warning against the alleged risks of a change of government.

Lord Malloch - Brown, a former diplomat and Labour Foreign Office minister under Gordon Brown, who is heavily involved in a new organisation, Best for Britain, which seeks to mobilise civil society against leaving the EU, argued that Labour risked missing its chance of power if it continued hedging its bets on Brexit.

In most instances of higher volatility, gold provides a hedge against not only equity risk but credit as well.

Providing a way to diversify your trading portfolio and hedge against risk, bonds allow you to take a position on future interest rate movements while leveraging the security and stability of government treasuries.

A large part of the reason has been that bonds have provided an effective hedge against equity risk.

The funds seek to hedge against the negative impact of currency risk by taking short positions in currency forward contracts.

Complementing traditional investments, Ross points out that real estate is less volatile (unlike stocks, it's not marked to market every day); provides diversification with a favorable balance of risk versus return; is favorably taxed via capital gains tax treatment and interest deductibility; generates returns similar to the stock market and «often more»; provides principal protection; a hedge against inflation and a pension - like «monthly coupon.»

For many investors, hedging at least a portion of their fixed income portfolio against interest rate risk will always make sense.

We are planning to retire in Canada and spend Canadian dollars in retirement so having this portion of my portfolio in Canada is a way to hedge against currency risk.

Corporate class funds offered an important hedge against all of those risks for non-registered account holders, through their tax efficiency.

It has held up in times of inflation and may hedge against other risks like geopolitical risk that hurts stocks.