STRUCTURAL PRODUCTS WITH CAPITAL PROTECTION AS AN ALTERNATIVE TO INVESTING IN CLASSICAL FINANCIAL INSTRUMENTS

2020 ◽  
Vol 4 (12) ◽  
pp. 68-72
Author(s):  
S. S. ROGOZIN ◽  
Keyword(s):  
Interest Rates ◽  
Market Development ◽  
Financial Instruments ◽  
High Demand ◽  
Structured Products ◽  
Retail Investors ◽  
Low Interest Rates ◽  
Work Mechanism ◽  
History Of ◽  
Investment Object

The article is devoted to the features of structured products as an alternative investment object. Under historically low interest rates, structured products are provoking high demand from retail investors. The author examines a history of structured products market development, focusing on the analysis of construction principles and work mechanism of structured products with capital protection. In addition, the author elaborates on some features of Russian structured products market and reviews risks, associated with investments in structured products.

Impact Investing Through Crowdlending: Examining the Role of Intermediation and the Potential for Development Banks

2020 ◽  
Vol 89 (3) ◽  
pp. 99-118
Author(s):  
Andrew Lee ◽  
Christiane Weiland
Keyword(s):  
Interest Rates ◽  
Business Models ◽  
Conflicts Of Interest ◽  
Small Scale ◽  
Impact Investing ◽  
Retail Investors ◽  
Low Interest Rates ◽  
Development Banks ◽  
Investment Crowdfunding

Summary: Development banks are facing changing market conditions with low interest rates, rapid technological change, and an increased interest in impact investment. This combination of factors challenges traditional processes and business models, but also provides a chance to develop new and sustained business opportunities. We examine examples of impact investment crowdfunding platforms in an international and domestic context. We evaluate their organisational structure, especially in connection with the potential integration of an intermediary and possible conflicts of interest. Our analysis provides both economic justification for activities of promotional and development banks in this area and new inputs for expanding their business model with a transparent and trustworthy financial lending instrument for small-scale retail investors.

Structural Blossom of Financial Markets

2010 ◽  
pp. 59-69
Author(s):  
A. Suetin
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Markets ◽  
Interest Rates ◽  
Inflation Expectations ◽  
Financial Assets ◽  
High Demand ◽  
Low Interest Rates ◽  
The Usa ◽  
Growth Deceleration

One of the attractive features of financial assets is linked to their ability to increase or preserve their buyers wealth. Soaring prices provoke investors euphoria, their decline - paralysis. In 2010 capital in the USA has moved from the stock market to the bonds market that directly reflects low inflation expectations and current low interest rates. High demand on government securities is due to new economic growth deceleration expectations.

Politics, Independence, and Retirees

2018 ◽  
Author(s):  
Peter Conti-Brown
Keyword(s):  
Interest Rates ◽  
Central Banks ◽  
Central Banking ◽  
Time Inconsistency ◽  
Short Term ◽  
2016 Election ◽  
Low Interest Rates ◽  
The Face ◽  
History Of

Until recently, it was widely believed that central banks must protect people from their own worst instincts: the populace demands easy money and low interest rates, and a politically sensitive representative class will give it to them. Central banks have the responsibility of resolving this time inconsistency problem by protecting the long-term value of the currency even against the short term demands of politics. Yet the financial crisis of 2008 and the 2016 election have changed this narrative. This chapter explores how this new political economy of central banking, in the face of long-term low interest rates, changes the posture of central banks against the rest of the polity. It discusses some history of political pressures against central banks in other climates and makes predictions about how the ‘new normal’ of lower interest rates will challenge the Fed’s ability to stay above the political fray, despite its best intentions.

scholarly journals Adaptive reuse of Sydney offices and sustainability

2017 ◽  
Vol 2 ◽  
pp. 6 ◽  
Author(s):  
Sara Jane Wilkinson ◽  
Hilde Remoy
Keyword(s):  
Interest Rates ◽  
Central Business District ◽  
Office Space ◽  
Key Stakeholders ◽  
Low Interest Rates ◽  
History Of ◽  
Social Environmental ◽  
Business District ◽  
Political Economic ◽  
Better Than

The built environment contributes 40% of total global greenhouse gas emissions and 87% of the buildings we will have in 2050 are already built. If predicted climate changes are correct, we need to adapt existing stock sustainably. Outside Australia there is a history of office to residential conversions. These conversions number few in Sydney although evidence suggests a trend is emerging in conversion adaptations. In 2014, 102 000 m2 of office space was earmarked for residential conversion in Sydney as demand for central residential property grows and low interest rates create good conditions. The Central Business District (CBD) population is projected to increase by 4% to 2031 requiring 45 000 new homes and this coincides with a stock of ageing offices. Furthermore, the Sydney office market is set to be flooded with the Barangaroo development supply in 2017; thus conditions for conversion are better than ever. However, what is the level of sustainability in these projects? And, are stakeholders cognisant of sustainability in these projects? Moreover, is a voluntary a mandatory approach going to deliver more sustainability in this market? Through a series of interviews with key stakeholders, this paper investigates the nature and extent of the phenomena in Sydney, as well as the political, economic, social, environmental and technological drivers and barriers to conversion. No major study exists on conversion adaptation in Sydney and the most residential development is new build. There is substantial potential to change the nature of the CBD and enhance sustainability with the residential conversion of office space. The findings show that opportunities are being overlooked to appreciate and acknowledge the sustainability of this type of adaptation and that there is a need for a rating tool to encourage greater levels of sustainability and to acknowledge existing levels of sustainability achieved in these projects.

scholarly journals Is zero the safe real rate?

2021 ◽  
Vol 16 (2) ◽  
Author(s):  
Andreas Mix
Keyword(s):  
Central Bank ◽  
Interest Rates ◽  
Economic History ◽  
Market Forces ◽  
Short Term ◽  
Real Rate ◽  
Equity Prices ◽  
Secular Stagnation ◽  
Low Interest Rates ◽  
History Of

The current economic debate with regards to the secular trend of ever lower, even negative, safe real interest rates is dominated by Keynesian, neoclassical and Austrian explanations. The former (two) argue that the interdependence phenomena of a global savings glut and a secular stagnation cause an oversupply of savings and thus drive down rates. From this position, central bank merely react to market forces. The latter dissent and argue that it was rather the other way around and an asymmetric central bank policy aimed at propping up equity prices led to the secular stagnation now quoted for its justification. In contrast, from the perspective of a critique of ideology, safe real rates where neither driven down by market forces nor central banks but by the weight of being not reasonably safe but riskless. Specifically, I argue that by equating the riskless return with the short-term interest rate, Black and Scholes (1973) state a tautology and imply that both rates shall be zero. In the subsequent inquiry, I show that this argument allows for a neat narration of the economic history of the neoliberal age. Furthermore, I explain why under current conditions ultra low interest rates fail to translate into inflation.

On one event in the history of reforms in China

2017 ◽  
pp. 140-147
Author(s):  
A. Yakovlev
Keyword(s):  
Market Development ◽  
Market Reforms ◽  
Deng Xiaoping ◽  
Balance Of Interests ◽  
History Of ◽  
Party Congress ◽  
Chinese Reforms

The paper analyzes confrontation concerning continuation of market reforms between main groups in Chinese elite after Tiananmen in 1989 and collapse of USSR in 1991. It considers in details the ‘southern tour’ of Deng Xiaoping in early 1992 and its impact on the balance of interests in Chinese elites before the 14th party congress. The paper shows also the specifics of Chinese reforms which combine market development with creation of rents for main elite groups.

How Finance Colonised Aotearoa: A Concise Counter-History

2019 ◽  
Vol 7 ◽  
pp. 41
Author(s):  
Catherine Cumming
Keyword(s):  
Financial Institutions ◽  
The State ◽  
Colonial History ◽  
Financial Instruments ◽  
Financial History ◽  
Early Colonial ◽  
History Of

This paper intervenes in orthodox under-standings of Aotearoa New Zealand’s colonial history to elucidate another history that is not widely recognised. This is a financial history of colonisation which, while implicit in existing accounts, is peripheral and often incidental to the central narrative. Undertaking to reread Aotearoa New Zealand’s early colonial history from 1839 to 1850, this paper seeks to render finance, financial instruments, and financial institutions explicit in their capacity as central agents of colonisation. In doing so, it offers a response to the relative inattention paid to finance as compared with the state in material practices of colonisation. The counter-history that this paper begins to elicit contains important lessons for counter-futures. For, beyond its implications for knowledge, the persistent and violent role of finance in the colonisation of Aotearoa has concrete implications for decolonial and anti-capitalist politics today.  

Remaking Retirement

2020 ◽  
Keyword(s):  
Interest Rates ◽  
Older Workers ◽  
Older Persons ◽  
The United States ◽  
Older Population ◽  
The Past ◽  
Cost Of Education ◽  
The World ◽  
Low Interest Rates ◽  
Key Aspects

Around the world, people nearing and entering retirement are holding ever-greater levels of debt than in the past. This is not a benign situation, as many pre-retirees and retirees are stressed about their indebtedness. Moreover, this growth in debt among the older population may render retirees vulnerable to financial shocks, medical care bills, and changes in interest rates. Contributors to this volume explore key aspects of the rise in debt across older cohorts, drill down into the types of debt and reasons for debt incurred by the older population, and review policies to remedy some of the financial problems facing older persons, in the United States and elsewhere. The authors explore which groups are most affected by debt, and they also identify the factors causing this important increase in leverage at older ages. It is clear that the economic and market environments are influential when it comes to saving and debt. Access to easy borrowing, low interest rates, and the rising cost of education have had important impacts on how much people borrow, and how much debt they carry at older ages. In this environment, the capacity to manage debt is ever more important as older workers lack the opportunity to recover for mistakes.

scholarly journals Special Issue “Interplay between Financial and Actuarial Mathematics”

Risks ◽  
2021 ◽  
Vol 9 (8) ◽  
pp. 139
Author(s):  
Corina Constantinescu ◽  
Julia Eisenberg
Keyword(s):  
Machine Learning ◽  
Control Theory ◽  
Option Pricing ◽  
Interest Rates ◽  
Financial Mathematics ◽  
Special Issue ◽  
Actuarial Mathematics ◽  
Mortality Models ◽  
Low Interest Rates

The Special Issue aims to highlight the interaction between actuarial and financial mathematics, which, due to the recent low interest rates and implications of COVID-19, requires an interlace between actuarial and financial methods, along with control theory, machine learning, mortality models, option pricing, hedging, unit-linked contracts and drawdown analysis, among others [...]

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