Robert called Peter at the city’s Building and Construction Trades Council. Peter is responsible for negotiating partnerships between the local union building trades and building contractors. Having worked with Peter in the past, Robert knew that he and Peter could figure out a way to meet each other’s needs. Robert set up a meeting. In [...]
Our study demonstrates that the increase of high-yield volatility effected by the desmoothing of the monthly return series moves the asset classes and the efficient frontier in a risk/return chart to the right. Evidence shows that consequently the composition and the risk-return profile of the optimal portfolios also change. While the weight of high yield [...]
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 [...]
Experience shows that risk must be actively managed and accorded a high priority, not only within the decision-making process but permanently and throughout the organisation. This might mean that risk-management procedures and techniques are well documented, clearly communicated and regularly reviewed and monitored. In order to manage risks, you have to know what they are, [...]
Risks are triggered by, for example, new management structures or reporting lines, new strategies and commercial agreements (including mergers, agency or distribution agreements). The complexity of this risk is illustrated by UK retailer Marks & Spencer’s expansion into overseas markets. Unhappily for its managers and shareholders, the strategy failed to deliver the anticipated results. When [...]
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.