(61) Its duty was to protect the client's assets as it would protect its own. (62) This concept made sense in a pre-electronic era when stocks, bonds, and other assets like jewels and deeds were physically stored in custody of a bank's t...
While equities markets are recovering from the pandemic amid a global vaccination movement, investors might still be skeptical about their true market value. This may be one reason investors have been preferred bonds over equities recently. “Financial advisers follow asset allocation models and portfoli...
thereby gaining both a source of new funds as well as greater flexibility to pursue new business. The benefit to the buyer—usually institutional investors—is that they can pick up additional yield relative to government bonds and augment their portfolio diversification. ...
Thus, there may be greater interest rate risk with these securities than with other bonds. Prepayment risk This is the risk that homeowners will make higher-than-required monthly mortgage payments or pay their mortgages off altogether by refinancing, a risk that increases when interest rates are...