0
How do you find convexity of a portfolio of bonds with short positions?
Wiki User
∙ 12y ago
1-CONV of Long Position
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is meant by the term portfolio investment?
Portfolio investment refers to investments in foreign countries that are withdrawable at short notice, such as investment in foreign stocks and bonds.
What is meant by net long or net short How is it calculated?
A condition in which an investor has more long positions than short positions in a given asset, market, portfolio or trading strategy. Investors who are net long will benefit when the price of the asset increases.Many mutual funds are restricted from short selling, which means the funds are usually net long. In fact, most individual investors do not hold large short positions, making the net long portfolio a common and usually expected investing situation. A position that is net long position is the opposite of a position that is net short. A condition in which an investor has more short positions than long positions in a given asset, market, portfolio or trading strategy. Investors who are net short will benefit when the price of the underlying asset decreases.Sometimes advanced traders will attribute a larger proportion of their portfolio to short positions rather than to long positions. This type of portfolio will increase as the prices of the underlying securities decrease because investors are borrowing securities from brokers and selling them on the market in hopes of buying them back later at a lower price. This type of position is taken by many large hedge funds and should only be attempted by experienced traders. Being net short is the opposite of being net long.
What is protfolio managemant?
A Combinations of shares, bonds Short term money instrument and other assets and Government securities is known as Portfolio andManaging our Portfolio in such a way to get maximum return at minimum riskon our investment is known as portfolio Management
Where the name Hedge Fund come from?
The name hedge fund comes from the investment strategy of hedging positions in equity securities. The first hedge fund was created to "hedge" long positions with matched short positions within securities that would reduce the perceived overall risk of the portfolio at hand.
What is short for nothing?
Short for nothing is a website and portfolio for a front-end designer by the name of Cy. Cy is short for nothing.http://shortfornothing.com/
Are short term bonds less risky then long term bonds?
Generally, yes.
What is span margin full form?
Short for standardized portfolio analysis of risk (SPAN). This is a leading margin system, which has been adopted by most options and futures exchanges around the world. SPAN is based on a sophisticated set of algorithms that determine margin according to a global (total portfolio) assessment of the one-day risk for a trader's account. Options and futures writers are required to have a sufficient amount of margin in their accounts to cover potential losses. The SPAN system, through its algorithms, sets the margin of each position to its calculated worst possible one-day move. The system, after calculating the margin of each position, can shift any excess margin on existing positions to new positions or existing positions that are short of margin.
What are the best sex positions if your girlfriend is short?
on her back is the best posision if your gf is short
Do you buy bonds for a short-term or a long-term investment?
Bonds are generally considered long-term obligations.
If there is a decline in interest rates which would you rather be holding long term bonds or short term bonds?
God
Which bond respond more to interest rate changes short or long term bond?
Typically, long term bonds are more price sensitive than short term bonds.
Tax Free Municipal Bonds Are More Secure Than Other Investments?
When you are looking for a low risk, long term type of investment municipal bonds is the first place you should investigate. Tax free municipal bonds are bonds issued by local and state governments and their associated entities. These bonds guarantee the return of your investment in a specified number of years along with interest. These bonds have an additional bonus attached to them. The profits you make from the money are tax free. The IRS has instituted this policy in an effort to have investors place their money into government programs. These bonds are issued so government authorities can pursue local infrastructure projects. When you invest in tax free municipal bonds the interest rate you make will be slightly lower than on corporate bonds. This should not be a deterrent. The tax free status of the bonds more than compensates for the lower interest rate. Profits made from corporate bonds carry a high tax burden. This type of investment is considered a long term investment. Municipal bonds generally carry a 20 – 40 year return rate on their purchase. Some bonds may be short term, but these are hard to find. Municipal bonds can be purchased directly from the organization issuing the bonds at the initial offering or through a bonds broker. Government regulations require that the agency issuing the bonds begin the intended project within 5 years of issuing the bonds. If, for some reason, this deadline cannot be met, the agency will return your investment plus interest. At that time they may issue another bond offering. Diversifying your investment portfolio is critical to its success. You should never place all your investments into one type of stock or bond or place all your money into one risk factor. You must, as a responsible investor, diversify your portfolio with low and high risk investments to ensure a good outcome. Municipal bonds are a great way to add a long term low risk balance to your portfolio.
