scholarly journals Hedge Funds and the Collapse of Long-Term Capital Management

1999 ◽  
Vol 13 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Franklin R Edwards
Keyword(s):  
Public Policy ◽  
Financial Markets ◽  
Hedge Funds ◽  
Bank Regulation ◽  
Policy Response ◽  
Capital Management ◽  
The World ◽  
The Stability

The Fed-engineered rescue of Long-Term Capital Management (LTCM) in September 1998 set off alarms throughout financial markets about the activities of hedge funds and the stability of financial markets in general. With only $4.8 billion in equity, LTCM managed to leverage itself to the hilt by borrowing more than $125 billion from banks and securities firms and entering into derivatives contracts totaling more than $1 trillion (notional). When LTCM's speculations went sour in the summer of 1998, the impending liquidation of LTCM's portfolio threatened to destabilize financial markets throughout the world. Public policy response to LTCM should focus on risks of systemic fragility and ways in which bank regulation can be improved.

Hedge Funds and the Collapse of Long-Term Capital Management

CFA Digest ◽  
2000 ◽  
Vol 30 (1) ◽  
pp. 76-78
Author(s):  
David B. Miyazaki
Keyword(s):  
Hedge Funds ◽  
Capital Management

scholarly journals A Reverse Mortgage as an Opportunity to Cover the Costs of Long‑term Care – Solutions in the European Countries

2020 ◽  
Vol 2 (347) ◽  
pp. 91-107
Author(s):  
Anna Warchlewska ◽  
Rafał Iwański
Keyword(s):  
Financial Markets ◽  
Long Term Care ◽  
European Countries ◽  
Reverse Mortgage ◽  
Term Care ◽  
Public Market ◽  
The World ◽  
Private And Public ◽  
New Challenges

The progressive aging of the population forces the world to face new challenges, especially in the financial sector. The paper strives to present possible forms of coverage of long‑term care in the private and public market. A reverse mortgage and perpetuity are a point of consideration for the world of science and practice but they are also associated with a great deal of controversy. According to the authors of this paper, the theme requires cognitive exploration. The aim of the study is to diagnose the current situation of financial markets in selected European countries related to a reverse mortgage and perpetuity. Assuming that the sources of funding the current needs of elderly people available on the financial market are voluntary ones, it is necessary to present a forecast covering the costs of long‑term care from public funds.

scholarly journals INVESTMENT STRATEGIES OF INSTITUTIONAL INVESTORS: SOVEREIGN WEALTH FUNDS VS ENDOWMENTS

2013 ◽  
pp. 117-126
Author(s):  
E. S. Biryukov
Keyword(s):  
Real Estate ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Private Equity ◽  
Investment Strategy ◽  
High Yield ◽  
Income Volatility ◽  
Sovereign Wealth Funds ◽  
The World

The paper considers two main original approaches to investing the assets of institutional investors (the total amount of their assets in the world is about 100 trillion dollars) – the one of Norway's sovereign wealth fund Global and approach of Yale's endowment fund. Fund Global with assets of $ 716 billion dollars is the largest institutional investor in the world, its strategy is based on the assumption that markets are efficient and their long-term growth lies in the balance of investment in stocks , bonds, and , since more recent time - in real estate. Financiers of Yale in the 1990s revolutionized the approach to investment, firstly, by reducing the proportion of stocks and bonds in favor of private equity and real estate, and secondly , by shift from investments in the domestic market to foreign markets. Not all institutional investors are ready to follow these strategies because of the risk of negative returns in times of crises, but in the medium- and long-term, these approaches allow to beat inflation. For example, Yale's endowment has grown since 1985 to 2012 from 1.6 to 19 billion dollars, and high yield allows to transmit 1 billion dollars (!) to the budget of the university annually. Endowment funds are one of the key sources of revenues of leading American universities. Analysis of the investment policy of endowment funds and sovereign wealth funds shows that fundamental changes in the concept of investing began to occur since the late 1980s - early 1990s . Institutional investors of both these types ceased to focus on conservative instruments - bonds and deposits , and use other options: Global - stocks , Yale – private equity , hedge funds, real estate investments , etc. With the expand of the spectrum of instruments in which the funds are invested the income volatility increases either, and therefore the institutional investors should be both transparent and explain to the public the motives of investment strategy changes.

scholarly journals China’s Experience in the Process of Financial Globalization

2021 ◽  
pp. 194-205
Author(s):  
Ekaterina Ryaskova
Keyword(s):  
Financial Markets ◽  
World Market ◽  
Financial Globalization ◽  
Capital Liberalization ◽  
Systemic Risks ◽  
The World ◽  
The Stability ◽  
The Moment ◽  
National Systems ◽  
Positive Results

The article examines the country’s strategy to “enter” the process of financial globalization. China’s embrace of globalization differs from many countries. In globalization processes, the financial component began to play a key role, giving multidirectional impulses to the development of the world economy. Financial globalization has engulfed all developing countries, which began to deregulate financial markets and promote capital liberalization, exposing national systems to systemic risks. The author proves the nature of China’s policy of “entering” the process of financial globalization, alternative from other countries, and describes the stages of introducing restrictions on the flows of speculative capital, the development of the stock market, as well as step-by-step decisions of the authorities to liberalize the conditions for the entry of foreign capital into the country. The article proves that the “moderate” nature of China’s strategy, the late opening of financial markets gave positive results for the country’s economic growth and the stability of the financial system. At the moment, China is actively opening its economy to foreign investors and capital without “shocks” and sets itself the goal of becoming a player that forms the rules in the world market.

scholarly journals THE USE OF POTENTIAL OF HEDGE FUNDS FOR UKRAINIAN INVESTORS

2021 ◽  
Vol 1 (54) ◽  
Author(s):  
Iryna S. Shkura ◽  
◽  
Olena M. Vinichenko ◽  
Mariia A. Hrybkova ◽  
◽  
...  
Keyword(s):  
Hedge Funds ◽  
Net Present Value ◽  
Management Strategies ◽  
Hedge Fund ◽  
Investment Project ◽  
International Investment ◽  
Long Term Results ◽  
Specific Class ◽  
Capital Management ◽  
The World

Studies show that the world of finance is not standing still; new methods and tools of attracting and using financial capital are constantly appearing. This, in turn, allows you to implement modern, more complex, strategies for managing profitability and risk of financial transactions. One such tool is hedge funds, which today are the most objective indicators of the development of the global financial system. This is due to the fact that they not only use modern financial technologies to make a profit, but also adapt all their actions to any changes in the world economy and international finance, and sometimes, as practice shows, shape these changes. That is why this investment instrument is one of the most popular in the European and American markets. Their high flexibility attracts the most talented financial managers to hedge funds, who are able to demonstrate impressive long-term results. The purpose of the article is development of an international investment project «Creating a hedge fund with Ukrainian investments» and evaluating its effectiveness. Hedge funds are a specific class of alternative investment funds that use modern capital management strategies, which are not available to «traditional» funds, have the right to invest their participants in any assets, use a hedging strategy for capital management, i.e. simultaneous purchase and sale of assets, trading in various instruments. This is the fastest growing segment of the financial market. The specifics of their activities allow hedge funds to make a profit even during periods of falling stock and bond markets. Hedge funds focus on the maximum return in terms of optimal (specified) risk or the minimum risk in terms of optimal return. Recently, complex algorithms and analytical methods have been developed to attract artificial intelligence for creating profit. Hedge funds are of special interest to Ukraine, but, unfortunately, have not yet appeared in our country. The lack of hedge funds in Ukraine is explained by the lack of necessary laws to regulate the derivatives market; insufficiently active stock market; psychological unpreparedness of domestic investors for possible high risks; lack of qualified specialists. It is proposed to turn to foreign experience and attract the organizational tools that are available today. Namely, to open hedge funds under the jurisdiction of offshore countries and with the involvement of outsourcing for their management and operation. It proposed the creation of a closed, unregulated, discrete hedge fund. The completed calculations of the project for a period of five years demonstrated its feasibility with a positive value of net present value, a discounted payback period of four years and a profitability index of more than one unit.

The Politics of Chronic Hunger And Famine

Food Politics ◽  
2013 ◽  
Author(s):  
Robert Paarlberg
Keyword(s):  
Public Policy ◽  
Personal Lives ◽  
Dietary Condition ◽  
The World ◽  
Chronic Undernutrition

How do we measure hunger? In our personal lives, hunger is a sensation we feel regularly at mealtime. In the world of politics and public policy, “hunger” is often used as a substitute word for chronic undernutrition, a long-term dietary condition that includes either a...

Financial Derivatives Valuation

2007 ◽  
pp. 125-131 ◽  
Author(s):  
A. Suetin
Keyword(s):  
Special Reference ◽  
Nobel Prize ◽  
Hedge Fund ◽  
Financial Derivatives ◽  
Capital Management ◽  
Valuation Model ◽  
Black Scholes ◽  
The World ◽  
Theoretical Issues

The article contains a thorough analysis of the world financial derivatives market with special reference to theoretical issues. It puts forward and traces Black-Scholes options valuation model. The author underlines particularities of advanced practical derivatives price calculation, using the math formula of the Nobel Prize winners. Some practical features of the concept and its implementation within notorious Long-Term Capital Management hedge fund are emphasized.

scholarly journals Does ESG Affect the Stability of Dividend Policies in Europe?

2020 ◽  
Vol 12 (21) ◽  
pp. 8804
Author(s):  
Pedro Verga Matos ◽  
Victor Barros ◽  
Joaquim Miranda Sarmento
Keyword(s):  
Dividend Policy ◽  
Profit Sharing ◽  
Significant Issue ◽  
Dividend Payout ◽  
Dividend Policies ◽  
Thomson Reuters ◽  
The World ◽  
The Stability ◽  
The Relationship

Sustainability has become a significant issue for firms and investors throughout the world, although it cannot be attained if policies impact the stability of firms’ dividend policies. In this paper, we use data from the Stoxx Euro 600 firms from 2000 to 2019 and the ESG (environmental, social and governance) scores from Thomson Reuters to assess the relationship between ESG responsibility performances and the firm’s dividend policy. The results indicate that more sustainable firms exhibit a more stable dividend payout. This result is also valid when the ESG pillars are analysed, specifically, the environmental and governance pillars. The findings further suggest that higher ESG scores reveal better long-term alignment with shareholders and other stakeholders due to more proportionally stable profit sharing.

COVID-19: innovative antiviral drugs required for long-term prevention and control of coronavirus diseases

2020 ◽  
Vol 27 ◽  
Author(s):  
Norman A. Ratcliffe ◽  
Helena C. Castro ◽  
Izabel C. Paixão ◽  
Cicero B. Mello
Keyword(s):  
Financial Markets ◽  
Vaccine Development ◽  
Antiviral Drugs ◽  
Microbial Diseases ◽  
Prevention Therapy ◽  
The World ◽  
Scant Attention ◽  
New Treatments ◽  
And Control

: The COVID-19 pandemic has had catastrophic Global effects on financial markets, jobs and peoples’ lives. Future prevention/therapy of COVID-19 will rely heavily on vaccine development and attempts to repurpose drugs previously used for other microbial diseases. Little attention, however, has been paid to possible difficulties and delays in producing these drugs. Sometimes, unfortunately, these endeavours have been politicized and if these two approaches founder in any way or resistance subsequently occurs then the World will be left once again to the mercy of these devastating viral pandemics. This review therefore briefly outlines the challenges in development of vaccines and repurposed antiviral drugs which will hopefully lead to new treatments for COVID-19. It also concludes, however, that the armoury against COVID-19 urgently needs enlarging due to the potential severity and likely future reoccurrence of new emergent viruses. Therefore, serious consideration is given to alternative ways of preventing and controlling these pathogens that have received scant attention from the mediain the present pandemic. The development of innovative, broad-spectrum, antiviral drugs from natural products is therefore particularly advocated with the challenges involved largely addressed by new regulatory and scientific initiatives.

scholarly journals Stability of the Regional Brewer Calibration Center for Europe Triad during the period 2005–2016

2018 ◽  
Author(s):  
Sergio Fabián León-Luis ◽  
Alberto Redondas ◽  
Virgilio Carreño ◽  
Javier López-Solano ◽  
Alberto Berjón ◽  
...  
Keyword(s):  
Standard Deviation ◽  
Relative Standard Deviation ◽  
Research Centre ◽  
Reference Instrument ◽  
Relative Standard ◽  
The World ◽  
The Difference ◽  
The Stability ◽  
Ozone Column

Abstract. Total ozone column can be measured using Brewer sprectrophotometers which are calibrated periodically in inter- comparison campaigns with respect to a reference instrument. In 2003 the Regional Brewer Calibration Centre for Europe (RBCC-E) was established at the Izaña Atmospheric Research Centre (Canary Islands, Spain) and from 2011 it has transferred its own calibration mainly to other European Brewers using the Brewer #185 as reference instrument. The RBCC-E organizes regular inter-comparisons which are held annually alternating between Arosa (Switzerland) and El Arenosillo (Spain). This work is focused on showing the stability of the measurements of the RBCC-E Triad (Brewers #157, #183 and #185) made in the Izaña Atmospheric Observatory during the period 2005–2016. In order to study the long-term precision of the RBCC-E Triad, it must be taken into account that each Brewer performs a large number of measurements every day and, hence, it be- comes necessary to calculate a representative value of all of them. This value was calculated from methods previously used to study the long-term behaviour of the World Reference and Arosa Triads. Applying their procedures in our triad allows us to compare the three instruments. In this way, the difference between the values calculated for each Brewer and the triad mean was analyzed. In daily averages, applying the procedure used for the World Triad Reference, the RBCC-E Triad presents a relative standard deviation mean equal to 0.41 % (σ157 = 0.362 %, σ183 = 0.453 % and σ185 = 0.428 %). In opposite, using the procedure of the Arosa Triad, the RBCC-E presents a relative standard deviation around at σ = 0.5 %. In monthly averages, the method of the World Triad Reference give a relative standard deviation of 0.33 %, 0.34 % and 0.23 % for Brewers #157, #183 and #185, respectively (0.3 % in mean). Whereas, the procedure of the Arosa Triad gives a monthly values 0.3 %. In this work, two ozone datasets are analyzed: the first included all the ozone measurements available while the second only includes the simultaneous measurements of all three instruments. Furthermore, in this paper we also describe the Langley method used in the RBCC-E Triad to calculate the Extra-terrestrial constant (ETC), which is the necessary first step to ozone retrieval. Finally, the short-term, or intraday, stability is also studied to identify the effect of the solar zenith angle on the accuracy of the RBCC-E Triad.

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