It doesn’t spread yourrisk, and it exposes you to the biggest fear that most of us have when we make an investment, which is the potential for an all-out loss. Studies have shown that as a species we prefer two birds in the hand to a potential five in the bush – if they come ...
It’s important to have enough bonds to deal with these threats, and to deploy your bonds effectively. McClung in particular has developed techniques to help you do this – see the ‘dynamic asset allocation’ section below. The trick is that you allow your bond allocation towax and waneacc...
DB pension schemes typically pay inflation-linked benefits with caps and floors, called limited price indexation (LPI) linked benefits. How should trustees manage these cashflows? LPI benefits present a risk management challenge to pension schemes. The ideal hedging instruments are LPI swaps. But ...
To make matters worse, Kogan’s14 working dayclaim meant they should have fixed my TV by November 10th… which is today. But surprise surprise, I contacted them and the response was “the new firmware isn’t ready yet“, and that maybe next week it will be. New firmware, different probl...
123, I’m certianly not going to claim Bernanke’s policy can save the euro, as it can’t save the US. Woolsey may favor cash restrictions (I don’t) but I was talking about the world we live in, in that world the two rates can differ. Indeed in 2008 the IOR and T-bill yield...
d, you claim to be for “capitalism” when you dont understand the concept. What makes you think our current system is genuine Capitalism? You breezily assume you are entitled to speak for the Left when you have no idea what they really believe You speak of “takers” (I have to assume...