Sentences with phrase «more underlying assets»

A security whose price is dependent upon or derived from one or more underlying assets.

Not exact matches

Put options can be a way for investors to bet against an asset, as they become more valuable as the underlying asset's price falls.

In fact, in my own businesses I would never consider using anything other than the free cash flow formula because it more accurately indicates the underlying economic condition of a business or asset.

The underlying determinants for these declines are related to the global supply and demand for funds, including shifting demographics, slower trend productivity and economic growth, emerging markets seeking large reserves of safe assets, and a more general global savings glut (Council of Economic Advisers 2015, International Monetary Fund 2014, Rachel and Smith 2015, Caballero, Farhi, and Gourinchas 2016).

The NASDAQ - 100 is also the underlying for one of the oldest and most popular ETFs; PowerShares «QQQ ETF (QQQ, B +) will enter its teenage years in March of 2013, and has more than $ 33 billion in assets.

A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.

However, our analysis suggests that their underlying properties would have also provided them with more resistance against rising inflation over the long term than the major asset classes.

Some of these funds provide far more liquidity to the customer than the underlying assets in the fund, and it is reasonable to worry about what would happen if these funds went into large liquidation.

Being disconnected from reality, these «products» have been more easily subjected to price manipulation than the underlying assets, and therefore have served as effective policy levers for central bankers to distort reality to achieve their objectives.

As derivative markets have become more liquid and the use of instruments such as options more widespread, it has become increasingly possible to use information from these instruments to analyse underlying asset markets.

For Munger, not considering the quality of the underlying business when buying an asset is far too limiting: «The investment game always involves considering both quality and price, and the trick is to get more quality than you pay for in price.

Given that the underlying fundamentals have only changed for the better, a more sustained rally in crypto assets could strengthen portfolios struggling with the late - cycle blues.

Hedging and speculation can both be done more easily and efficiently using derivatives than with the actual underlying assets.

There are three main kinds of derivatives on the commodities market — contracts made between two or more parties who agree on the value of the underlying asset: futures and forwards, options and OTC products.

If anything, the price of an ETF is more tightly coupled to the underlying holdings or assets than a mutual fund, because of the independent creation / destruction mechanism.

For those that want the quick hit and don't care about the underlying ideas, here is the main idea: A vehicle holding assets may appear more liquid than the assets themselves, but that is onl...

Mortgages and education loans are generally seen as more favorable than other consumer loans since interest rates are generally lower, they may receive favourable tax treatment, and the underlying assets will likely appreciate over time.

Altogether, there are more than 150 underlying assets for you to choose from.

The shares of the Spain Fund, Inc., a closed - end mutual fund investing in publicly traded Spanish securities, were bid up in price from approximately net asset value (NAV)-- the combined market value of the underlying investments divided by the number of shares outstanding — to more than twice that level.

The Spain Fund priced at twice net asset value was another example of trading sardines; the only possible reason for buying the Spain Fund rather than the underlying securities was the belief that its shares would appreciate to an even more overpriced level.

Investors should understand that because of the complex financial methods used by commodities funds, they may have more risk than simply the value of the underlying assets.

If you are more risk averse, and your portfolio is more heavily weighted towards U.S. - based investments, has lower currency volatility, or low correlation between the currency and the underlying asset return, you may consider having a lower proportion of currency hedged investments.

Due to the active management and underlying investments, these funds may carry more ongoing costs than other assets.

Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and the Portfolio could lose more than the principal amount invested.

Of course, changes in the underlying return - seeking and income - oriented assets may change more meaningfully.

If the debt is at 2 % and the underlying assets pay 8 %, it creates 6 % more income on the leveraged side of the equation.

With increasing distance from the underlying asset these actors relied more and more on indirect information (including FICO scores on creditworthiness, appraisals and due diligence checks by third party organizations, and most importantly the computer models of rating agencies and risk management desks).

While government agency - backed RMBS were not immune to the negative credit risk implications, especially as the government agencies — Federal National Mortgage Association (FNMA or Fannie Me) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)-- were placed under conservatorship by the U.S. government in 2008, «private label» RMBS without government backing were clearly the more volatile investments, and they suffered losses in the underlying assets, as well as severe swings in market value.

The problem is that robos tend to include more «esoteric» funds, ones that not only trade with a larger spread between bid and ask prices (translation: higher cost to you), but also trade at a discount or premium to the underlying assets in the ETF (translation: higher costs to you if the manager buys at a premium or sells at a discount to asset value).

Secondly, the VIX is designed as a theoretical price, not an asset - this is advantageous in that it is quoted in units of the underlying asset, but volatility is much more expensive and difficult to hedge than variance.

Because they offer the right to sell, put options are more valuable when the underlying asset price is falling.

A multi-leg options order is a type of order used to simultaneously buy and sell options with more than one strike price, expiration date, or sensitivity to the underlying asset's price.

This portfolio invests in derivative instruments such as swaps, options, futures contracts, forward currency contracts, indexed and asset - backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange - traded funds that involve risks including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested.

Since every lifecycle fund uses the fund family's in - house funds as ingredients, it will be hard to simply attribute TRP funds» superior performances (more than 2 % higher than their rivals) to their asset allocations without knowing exactly the allocations of the underlying fund elements (as indicated by the 2035 funds in which Vanguard, Fidelity, and TRP has 89 %, 81.4 %, and 88.6 % in stocks, respectively).

Generally speaking, the more volatile the underlying asset the more valuable the option will be.

More importantly, because you aren't actually purchasing the underlying asset you can get leverage of up to 20:1, allowing you to take a large position with a small investment.

The glide path adjusts the underlying asset classes periodically to become more conservative as the stated target retirement date approaches.

Some ETF's that investors buy for income pay out a constant distribution that is sometimes more than the dividend and interest that is earned by the underlying assets.

This type of investment is usually medium to long term (5 years or more), because of the potential for volatility of the underlying assets.

All this just means that when a bank finally has no more impairments, it's probably well into a multi-year positive cycle on an underlying basis, and also will enjoy a wonderful tailwind of asset writebacks!

And, the ETFs don't necessarily create more net demand for the underlying assets.

All of these events reflect slow and steady progress toward simplifying the partnership structure, and, I believe, making the value of the underlieing assets more visible.

Barron's wrote about bond ETFs that lost more than their underlying assets in May.

They are formed by combining two or more options in the form of legs under which option contracts are bought and sold equally, but with different strike prices, sometimes different expiration dates and also different underlying assets.

It's truly a win - win, because the underlying assets (the dividend growth stocks themselves) are typically increasing in value as the businesses they represent equity in are becoming worth more.

The advantage of options trading is that you do not have to own the underlying asset, which can often be far more expensive than a stock, for example.

OptionFair also offers a demo trading account for 72 hours for its members, which is once again sufficient to learn more about the trading platform and learn to act quickly and respond to movements in an underlying asset.

Warrants may be considered more speculative than certain other types of investments in that they do not entitle a holder to dividends or voting rights with respect to the underlying securities that may be purchased nor do they represent any rights in the assets of the issuing company.

Gold: similar to above, except tends to be more stable on the long run (underlying assets usually can't mess themselves up)

And the model's geared to the markets (underlying asset growth's a natural tailwind) & enjoys a network effect (good returns & more AUME tend to attract even more AUME).