[T] he dramatic increase in
leveraged bond positions by both US hedge funds and mundane money managers set in motion self - reinforcing liquidations once uncertainty over emerging markets including Turkey, Venezuela, Mexico, and Malaysia - all of which experienced sharp capital flow volatility - put pressure on speculative positions.
At the time, highly
leveraged bond positions and external shocks came together.
Not exact matches
Bond trading can be short, or long term and allows bond traders to take a position on future interest rate movements while leveraging the security and stability of government treasur
Bond trading can be short, or long term and allows
bond traders to take a position on future interest rate movements while leveraging the security and stability of government treasur
bond traders to take a
position on future interest rate movements while
leveraging the security and stability of government treasuries.
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.
Providing a way to diversify your 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.
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.
In order to guarantee the capital invested, the seller of portfolio insurance maintains a
position in a treasury
bonds or liquid monetary instruments, together with a
leveraged position in a «risky asset», usually a market index.