Sentences with phrase «risks of the underlying asset»

A total return swap is a contract in which a payer and receiver exchange the credit risk and market risk of an underlying asset.

I'm not a GSE analyst to ponder on their insolvency; the black magic of the short - term market is in the instant transfer of any type of risk of the underlying assets into the credit risk of a money fund portfolio as a whole.

Not exact matches

But most of the underlying assets remain relatively solid and DBRS did outline the risks related to the product's leveraged structure, which should have stopped any broker from comparing ABCP to GICs.

Each opportunity is evaluated based on the underlying value of the asset and the risks associated with correcting the situation to unlock value.

A «restriction on benefits incentivising trading,» «a standardised risk warning,» and «leverage limits on the opening of a position between 30:1 and 5:1, whose limit will vary according to the volatility of the underlying asset» also featured among the proposals published in December.»

ETFs are subject to risks similar to those of stocks and trading prices may not reflect the actual net asset value of the underlying securities.

Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets.

Trading in binary options is highly speculative, involves an outstanding risk of loss and is not suitable for everyone but only for those investors who: (a) understand and are willing to assume the economic, legal and other risks involved; (b) are financially able to assume the loss of their total investment; and (c) have the knowledge to understand binary options trading and the underlying assets.

In other words, the amount of investment per trade is your risk while the reward is the payout offered on the specific asset after the expiry of that contract.As a trader, you select whether the underlying

For every investable asset — publically traded or otherwise — the underlying value of the asset is the sum of the discounted future cash flows, and risk comes from paying too high a price for those cash flows.

The strategy allocates risk and leverage based on variance assuming stable correlations... The risk parity strategy, decomposed, is actually a portfolio of leveraged short correlation trades (alpha) layered on top of linear price exposure to the underlying assets (beta).

Similar to ETFs, owning an ETN generally reflects the risks of owning the assets that comprise the underlying market benchmark or strategy that the ETN is designed to reflect.

In particular, futures and forwards provide information about the expected future price and options provide information about the volatility and risk associated with the price of the underlying asset.

Alternatively, it is possible to eliminate only longevity risk while retaining the underlying assets via reinsurance of the liability.

Instead of doing this, could I also hedge the risk by buying or selling another option on the same underlying asset?

Underlying Price Risk: The price of ETFs will fluctuate, reflecting changes in the value of the underlying assets or derivatives, so the value of your investment may increase orUnderlying Price Risk: The price of ETFs will fluctuate, reflecting changes in the value of the underlying assets or derivatives, so the value of your investment may increase orunderlying assets or derivatives, so the value of your investment may increase or decrease.

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.

Whether private corporates or securitized debts, there is no way to accurately estimate risks, unless you have a cash flow database of the underlying properties / assets, and aside from CMBS, that would be hard to get.

Investing in commodities indices that are constructed using long or short positions in futures on physical commodities whose value is determined based on the price of the underlying physical commodity plus yield and that trade on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining commodities exposure and can provide a means for market participants to access the five components of the returns of the asset class.

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.

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.

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).

Early amortization risk Early amortization of asset - backed securities can be triggered by events including but not limited to insufficient payments by underlying borrowers and bankruptcy on the part of the sponsor or servicer.

The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard Total Bond Market II Index Fund 14 % Vanguard Total International Bond Index Fund 5 % Vanguard Short - Term Inflation - Protected Securities Index Fund 6 % Vanguard Federal Money Market Fund 75 % Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics.

Consider an over-the-counter (OTC) option sold (written) by Bank A to Customer C. Market risk refers to the fluctuating value of the option; if it is daily - mark - to - market, its value will be a function largely of the underlying asset price but also several other risk factors.

Our approach is designed to maintain parity between your risk profile and its underlying asset holdings over the course of the changes in the business cycle.

This means that you reduce your risks and your fees while giving you access to a sophisticated set of underlying assets.

One of the principles underlying the Fidelity Select Fundranker system is to remain 100 % invested in Select funds all the time, so investors interested in Fundranker should be able to tolerate somewhat higher risk for the portion of their assets they invest in the Select funds that make up the Top Eight Model Portfolio.

We adjust for risk as the cycle evolves thereby helping to keep our client's risk tolerance in - line with that of the various asset classes we hold in underlying portfolios.

When he inputs a derivative used as a hedge it allows the risk associated with the price of the underlying asset to be transferred between both parties involved in the contract being traded.

Our investment strategy carries with it inherent risk control due to the very nature of the highly diversified types of companies we invest in, whose underlying assets cover a range of sectors and countries.

The estimated Underlying Fund Expenses for each age - band of the Age - Based Investment Portfolio, each Target Risk Portfolio and the Multi-Fund Portfolio reflect the weighted average of the estimated Underlying Fund Expenses for each Underlying Fund in which the Investment Portfolios invest based on their respective target asset allocations.

By contrast, there are other firms, such as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar use of technology, but we have real, live investment advisors who deal extensively with clients and match them with the right asset allocation, low - cost underlying portfolios, very low cost, and disciplined rebalancing, which is really an essential risk management and return tool.

Your main investment risk is the performance of the underlying shares or other assets.

The extent to which the composition of the investment assets of the Underlying Funds held by each Portfolio exposes the Portfolio to the risk of movement in the value of non-U.S. currencies in relation to the U.S. dollar will be monitored on an ongoing basis.

The underlying idea of a well planned out asset allocation (used in conjunction with rebalancing) is to (a.) get better returns (b.) reduce risk.

The advantage to this structure is that the CFD trader carries no risk of having to take possession of the physical underlying asset.

Futures traders are traditionally placed in one of two groups: hedgers, who have an interest in the underlying asset (which could include an intangible such as an index or interest rate) and are seeking to hedge out the risk of price changes; and speculators, who seek to make a profit by predicting market moves and opening a derivative contract related to the asset «on paper», while they have no practical use for or intent to actually take or make delivery of the underlying asset.

Market fluctuations may alter the asset allocation of the underlying index which will result in a different risk profile from time to time.

Mortgage securities and collateralized mortgage obligations (CMOs) are subject to prepayment risk and the risk of default on the underlying mortgages or other assets; such derivatives may increase volatility.

Because a bond mutual fund is just a collection of bonds, at any given time its expected return and risk are exactly equal to those of the underlying assets it holds.

My conclusion was that TFG trades at a discount because of it's egregious fee structure a — i.e. if you have the same underlying risk on two bonds and someone «steals» 20 % of your coupon then that bond should naturally trade at a discount... I chose to invest in CIFU as it consistently pays out 50 % of all free cash as dividend and reinvests the other 50 % in similar asset and its running at much lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspecasset and its running at much lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspecAsset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspective.

The percentages of the Portfolio's assets allocated to each Underlying Fund are: Vanguard Total Bond Market II Index Fund 70 % Vanguard Total International Bond Index Fund 17.50 % Vanguard Institutional Total Stock Market Index Fund 8.75 % Vanguard Total International Stock Index Fund 3.75 % Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics.

These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index.

The use of swaps involves risks different from, and possibly greater than, the risks associated with investing directly in the underlying assets.

These risks include the possibility that you will make trades without having all the information you need, or that you may trade CFDs at a price that doesn't reflect the value of the underlying asset.

The additional risks of opening new CFD positions when underlying assets are suspended or halted should also be explained.

We believe that certainty of underlying asset value is the most important factor to consider when evaluating risk.

Some structured products offer protection of the principal — when held to maturity, subject to issuer credit risk, thus offering a lower risk than investing in the underlying asset directly.

The factors that impact risk are the value of the underlying assets and the decisions made by management that could impact asset value.