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when a borrower uses repo market for fund financing he has to deliver the securities to the lender one way to do this is to deliver the
pension fund management a global perspectivepension funds are known worldwide more for their social security element they have assumed more
the collaterals used in the repo market are high quality securities but they are also not free from credit risk in our earlier example we
repurchase agreement is a contract wherein the seller of a security agrees to buy back the same security from the purchaser at a
organizational structure of pension fundsin an investment organization such as pension funds endowments life and casualty insurance companies the
leveraging can be described as an investing principle where funds are borrowed to invest in a part of the securities the manager hopes to
role of trustee in pension fundtrustees are people in control of long-term asset allocation of a pension scheme whatever benchmark they set will as
optimal portfolio selectionthe next step involves selecting the optimal portfolio the strategic asset allocation will have overriding importance in
portfolio diversificationthe objectives of diversification are toreduce the variability of the funds total returnreduce the exposure to any single
credit analysis is the financial analysis used for determining the creditworthiness of an issuer using various quantitative and qualitative
investment objectivesany investment should always start with identifying its objective thus the first step in the pension fund investment management
pension fund managementpension fund systems ought to be carefully designed and supervised to make sure that their purposes are met the economic
liabilitiesthe company must take into account the nature of its liabilities as well as its solvency positioncash flows besides the investment yields
assetspension insurance companies assets can be divided into five main investment classes cash long-term bonds stocks property and loans the total
the key parameters taken into account while rating a debt instrument are as follows1 industry evaluation - this involves an
defined contribution plansin defined contribution plans the contributions made by or on behalf of the employee are accumulated and paid on retirement
the following guidelines are applicable for the issue of fully convertible debentures fcds partly convertible debentures pcds
based on the period involved in repayment of the debt obligations the debt instruments could be classified into long-medium-short-term
sovereign ratingthis includes rating a country as to its creditworthiness probability of default
individualborrower ratingthis includes rating a borrower to whom a loancredit facility may be
rights of investorscertificatesan investor is entitled to receive sharesunit certificates allotted to him within a period of 6 weeks from the date of
the issuer will not have to disclose the rating to the publicthe firm can either independently or with the help of its investment banker
restrictions on investmentsa mutual fund scheme shall not invest more than 15 of its nav in debt instruments issued by a single issuer which are
performance of mutual fundsthe performance of mutual funds can be evaluated by calculating the rate of return earned during the relevant comparison
rating symbolcapacity for timely repaymentrating symbolcapacity for timely