International Financial Markets - Essay Example

Only on StudentShare

Extract of sample
International Financial Markets

From this point, bond portfolios can be restructured in a systematic manner outlined as under: In the events when interest rates are expected to decrease, it would be advisable to restructure the bond portfolios drifting towards securities constituting long-term maturities. This will allow the portfolios to earn maximum capital gain because there is a stronger likelihood that the price of the bonds having long maturities are expected to increase by a greater amount than that of bonds having short maturities in case of a decrease in the yields. Conversely, in the events of an increase in the interest rates, it would be advisable to restructure the bonds portfolios drifting towards short-term securities as it may likely to result in decreasing the capital losses from a decrease in the prices of long-term maturities compared to the increase in the prices of securities having short-term maturities. ...Show more

Summary

Duration and Bond Investment Management Task 1 Duration is the concept that is used to demonstrate and quantify the element of risk present in fixed-income securities. There are numerous kinds of fixed-income securities, different in nature due to their coupon rate, yields, prices, maturities, etc…
Author : jastnyah
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"International Financial Markets"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Markets: Distinguishing between international banking and global banking
Either banking system deals with assets and borrowers from a location other than the institutional head quarter of the bank. More phenomenally, the difference is identified between the fund raising and distribution stream of both of them while they deal with foreign deposits and borrowings.
12 pages (3000 words) Assignment
Financial Institutions & Markets - Financial Innovation
can be supposed to be the attributing factors towards the development of financial innovation. Innovations are mainly done to achieve the basic objectives of financial systems like facilitating the required payment instruments, increased savings, reduction in costs, etc.
6 pages (1500 words) Essay
International Financial Markets
Japan has also incurred high public debt for which its credit rating has been downgraded by Standard and Poor’s (S&P) in January 2011. In August of the same year, S&P downgraded long-term U.S. sovereign debt from the highest possible rating, AAA, to AA+.
9 pages (2250 words) Essay
International Financial Markets: Exchange Rates and Inflation
Levene (2009, 6) asserts that information is extremely crucial because it enable foreign investors to make solid decisions without buying information about the stocks and financial markets. Many companies have unified their accounting standards and financial data for the potential investors to access such information.
7 pages (1750 words) Coursework
Financial Markets
Financial directors make decisions in such environments like the financial markets, financial institutions, taxation and legal instruments as well as the nature of the region's economy. In addition to that, the financial atmosphere both determines the existing monetary substitutes and the influences that come out from many decisions.
6 pages (1500 words) Assignment
Financial And Accounting Challenges Faced By Businesses From Emerging Markets In Meeting International Accounting Standards. Companies In Azerbaijan.
Financial And Accounting Challenges Faced By Businesses From Emerging Markets In Meeting International Accounting Standards: With Special Reference To Companies In Azerbaijan. In the year 2005 it was observed that companies in many countries started adopting International Financial Reporting Standard (IFRS).
9 pages (2250 words) Research Proposal
International Financial Markets
They channel the funds from firms, households and the governments which they have surplus funds to those who have shortage of funds as they spend more than their level of income. Primarily governments, corporations, households, foreigners have excess funds with them and hence they lend them.
10 pages (2500 words) Essay
AC2650 cw2
Stock exchanges act as “continuous auction” in the market with sellers and buyers doing transaction at the same level which is known as the floor of the stock exchange. Investing in stock exchanges gives better return but
9 pages (2250 words) Essay
Evaluate Auditing Processes
Contextually, as per the provided case, an audit has been conducted on behalf of Town of Maywood with regards to determine its financial performance and other activities over a period of time. In accordance with the facts presented, the
4 pages (1000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT