The city is in the midst of a building boom.All over downtown, the landscape is changing as office space gets tighter and towers sprout up on once-empty street-level parking lots. One of the city’s largest,most prestigious contractors has just completed negotiations with a legal firm to build a new office tower. The location was selected, [...]
The implementation of the desmoothing methodology increases portfolio risk. We already mentioned that there is a permanent and relatively stable component in bond (index) returns resulting from interest accrual, roll down and yield-curve effects. Therefore we apply the desmoothing technique only to the series of monthly changes in the price indices, and afterwards add the [...]
Lower rated bonds or bonds with higher spreads behave more like equities in falling equity markets (crisis scenario). For high-yielding bonds (highyield debt), the strike price (the value of indebtedness) is normally closer to at-the-money than in the case of investment grade bonds. The high-yield market spread is correlated with the S&P 500 as a [...]
Once risks are identified they can be prioritised according to their potential impact as well as the likelihood of them occurring. This helps highlight not only where things might go wrong and what their impact would be, but how, why and where these catalysts might be triggered. There are many potential risk catalysts. Five of [...]
My name is Emily Mortimer. I'm an academy professor with a degree in economy and considerable experience in training both students and private contractors in matters of business, finances and money management.