Beginning investor

But are these folks really going to log on to the Internet to buy bonds The answer is yes. According to the 2000 census (http //www.census.gov), there are more than 82.8 million people in the United States between the ages of 35 and 54—this is up 32 percent, or 20 million, from the 1990 census (and all but the 35-year-olds are considered by the U.S. Census Bureau to be Baby Boomers). Thus, the traditional "beginning investor" audience for Treasury and municipal bonds—those making the... 

To define the economic performance of a manufacturing venture, an analyst must predict various sources and sinks of money throughout the lifetime of a project. In fact the investors invest a huge amount of money when they begin to build the chemical plant, but they will earn money from sales only when the plant is finished and operating. Owing to inflation and devaluation, future money is different from present money [13,15], Therefore, a future income needs to be discounted to its present value in order to evaluate the expected profitability of a chemical plant. Of course, when dealing with future events, nobody can be absolutely positive about prices, inflation rates, etc. Therefore many assumptions need to be... 

The climate change actions led by some large public pension funds and state treasuries in the United States could well be the beginning of a sea change. If their actions are successful financially, this approach could expand to a much larger universe of investors across a more expansive range of sustainability issues. 

One thing we need to learn to do is respect die "soil" out of which our business grows, the soil out of which you with your dreams, desires, and needs spring forth and are fed. The soil is your essence and yotu environment it is that sacred place within you that connects yoiu life to the lives of your clients, suppliers, staff, and investors. It is where you go at the beginning of your search for a way to serve and be served through business. It s also where you... 

Unfortunately, market risks have increased as the array of available investment instruments has broadened. For example, the Mexican peso crisis in 1994, the Asian currency debacle and recession beginning in 1997, the Russian debt default and the unprecedented hedge fund bail-out coordinated by the Federal Reserve Bank in 1998, and a 30% drop in the price of technology shares early in 2000 all had major repercussions for financial markets. Where is an investor to find solace in such an unfriendly and disturbing environment ... 

These generalizations presume investors are in the top marginal tax bracket (federal, state, and local) both at the beginning of the horizon and at the end. The extent to which investors move into lower brackets via diminished post-retirement income or by migrating to lower tax jurisdictions make the benefits of deferral even greater. 

An investor s corporate bond portfolio has an identical duration to a benchmark portfolio of government bonds, and an OAS of 50 basis points. Assume that the portfolio has a spread duration of 5. During a 12-month holding period, the excess income of the portfolio compared to government bonds is 0.25%. How much can the OAS widen before the corporate bond portfolio begins to underperform the government portfolio ... 

This is essentially, but not precisely, the same as saying that the inflation increase in principal is not taxable. There are two reasons why it is not the same. Firstly, if an investor tax year end is, say, December, the relief will be based on the RPI change from December to December, without a lag, whereas indexation occurs with an eight month lag. Secondly, the starting value at the beginning of any tax year is unlikely to be exactly indexed par. 

There is a wide variety of European securitisation transactions that are backed by one form or another of commercial property. This variety stems from the range of types of commercial property that may be included in the collateral pool, the type of borrower or borrowers, and the level of exposure to any underlying industries or sectors. As a result, it is not always clear where this sector begins or ends, and although it may be tempting to invent new subclassifications for the various fragments of the sector, this is not necessarily particularly helpful for investors or the market in general. To complicate matters further, a number... 

The best and, perhaps, most durable opportunities for CDO creation arise when investable funds in a particular jurisdiction begin to outgrow the investment options historically available. Under such circumstances, investors begin searching elsewhere to invest their excess liquidity. The skilled structured financier will, in partnership with his or her distribution channels, recognise this liquidity disparity and begin his or her work. 

In snmmary, a CDO is a very powerfnl tool that facilitates the needs of many market constituents. Like all tools, however, they have to be used properly. A CDO structured where the unique particulars of the collateral, the asset manager, and investor are considered, and most importantly balanced, begins to define the minimum standard of excellence that all good structnred financiers shonld respect. 

The EURIBOR futures contract allows a market participant to lock in a 3-month rate on an investment or a 3-month borrowing rate. The 3-month rate begins in the month that the contract settles. For example, an investor on 30 June 2003 purchased a contract that settles on 15 September 2003 and the EURIBOR futures rate is 1.3%, the investor has locked in the rate of 1.3% on a 3-month investment beginning 15 September 2003. 

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