Posts Tagged ‘income’
Thursday, May 13th, 2010
In this section we return to the transparency of financial markets, which was introduced in Chapter 1. The degree of transparency is relevant because it influences traders’ strategies, hence the pricing process. However, given the great variety of aspects, assessing the effects of pre-trade transparency on market quality is complicated, so it is not surprising that the results offered by the literature differ significantly depending on the market structure considered and the type of information revealed.
If one models transparency as the increased visibility of the liquidity suppliers’ order flows, the effects of pre-trade transparency on market quality will show the benefits of the reduction in adverse selection costs for liquidity and uninformed traders’ welfare.
Clearly, when liquidity suppliers can screen informed and uninformed traders, they can also offer liquidity on better terms to the uninformed. If, however, pre-trade transparency is modelled as the visibility of traders’ identification codes, the effects on market quality can differ, as has been shown by Foucault, Moinas and Theissen (2007) and Rindi (2008). Finally, an often-debated question is the relationship between clients and intermediaries, given that the latter enjoy privileged information on the motivation for their clients’ trades and can exploit this by acting as a counterpart in the trades (dual capacity trading (Röell, 1990) or trading before the clients (front running)).
Tags: get out of debt, income, international markets, money issues, revenue
Posted in real estate, research, stocks, strategy elements, taxes | Comments Off
Saturday, November 21st, 2009
Fallen Angels and crossover credits are often targeted by alternative investor groups like hedge funds and risk arbitrageurs who speculate on the mispricing between the various financing instruments of a company.
Characteristics of Fallen Angels:
- High leverage in respect to operating cash flows
- Weak industry trends lead to low and unpredictable operating cash flows
- A further deterioration of the operating performance is not sustainable with the financial profile
- Loss of market share
- Not enough liquidity to support the ongoing business
- Decreasing asset quality
- Management is unable to identify profitable business units
- Weak and complex debt structure
- Unfavorable regulatory environment and lack of support by the government (mainly for European companies)
Tags: Aids finance, Debt, economics, estate, Estate Planning, heir, income, inheritace, insurance, Interest, joit, last will, Market, market cycle, rate, tenancy
Posted in management, merchandise, money spending, negotiationg, online bank, payments, profitability | Comments Off
Wednesday, October 28th, 2009
The rapid growth of the European corporate bond market since 1997 has promoted the acceptance of corporate bonds as a separate asset class. Therefore, identifying relative value not only between equities and government bonds, but also relative to corporate bonds, has become a central task of asset allocators. But, of course, this analysis is also relevant from the perspective of a pure fixed income investor. Not only does it help to assess the outlook for credit spreads in general, but also to decide on the beta or, in other words, the aggressiveness of a pure corporate bond portfolio relative to its benchmark. Although it has been common use to compare equities and government bonds, it is far less common to compare equities and corporate bonds.
Tags: credit score, get out of debt, income, international markets, making money, merger, money issues, money tips, personal finances, revenue, shares
Posted in accounting, attitude, banking, equity, expenses, finances, merchandise, money spending, negotiationg | Comments Off
Thursday, October 22nd, 2009
After the 1990/91 recession the US corporate sector underwent a period of massive restructuring. Balance sheet repair, rights issues to repay debt, asset disposals and measures to improve cash flow generation led not only to falling leverage, but also to low earnings growth rates. During this first phase of the debt–equity cycle, the ‘repair phase’ credit usually outperforms equities. It lays the foundation for higher growth rates due to an improved ability to generate cash flows. The subsequent recovery period is beneficial for equity markets as well as credit markets, as the years 1994–97 have shown.
Tags: Aids finance, currency cycles, Debt, economics, estate, Estate Planning, heir, income, inheritace, insurance
Posted in business goals, business patterns, business publications, business strategy, campaigns, cash demand, companies | Comments Off