Sentences with phrase «portfolios against market declines»

Portfolio Insurance: This refers to a trading strategy that utilizes stock index futures and / or stock index options to protect stock portfolios against market declines.

Not exact matches

Portfolio insurance is a hedging strategy that uses stock index futures to cushion equity portfolios against broad stock market declines.

Finally, if AIG had defaulted, Goldman Sachs would have been forced to bear the risk of further declines in the market value of the approximately $ 4.3 billion in CDOs that it transferred to the Maiden Lane III portfolio as well as approximately $ 5.5 billion for its credit default swaps that were not part of the Maiden Lane III portfolio; Maiden Lane III removed any risk for the $ 4.3 billion within that portfolio, and continued Government backing of AIG provided Goldman Sachs with ongoing protection against an AIG default on the remaining $ 5.5 billion.

The core of our investment philosophy is that excessive returns are rarely realized, and therefore should be traded for the opportunity to generate more stable returns, protect against some market declines, and reduce overall portfolio volatility.

ALFA has a similar strategy with a twist; the whole portfolio can go equally long and short in response to a technical stop - loss signal built into its strategy to protect against a prolonged market decline.