Alternative Investments and the Mismanagement of Risk - download pdf or read online

By Dimitris N. Chorafas (auth.)

ISBN-10: 0230508944

ISBN-13: 9780230508941

ISBN-10: 1349510262

ISBN-13: 9781349510269

Show description

Read Online or Download Alternative Investments and the Mismanagement of Risk PDF

Best risk management books

Get Workers' Comp for Employers : How to Cut Claims, Reduce PDF

Geared toward vendors and bosses of small companies, this e-book is still the best-known name to aid employers take care of the employee' comp factor. It exhibits the way to hinder employees' comp difficulties from occurring within the first position, realize fraud and abuse, get injured employees again at the task, and hold crooked attorneys and medical professionals at bay.

Read e-book online Bayesian risk management : a guide to model risk and PDF

A hazard dimension and administration framework that takes version probability heavily most money danger versions imagine the long run will appear like the previous, yet powerful probability administration is determined by selecting basic adjustments available to buy as they happen. Bayesian threat administration information a extra versatile method of chance administration, and offers instruments to degree monetary probability in a dynamic industry surroundings.

New PDF release: The XVA of Financial Derivatives: CVA, DVA and FVA Explained

This newest addition to the monetary Engineering defined sequence makes a speciality of the hot criteria for derivatives valuation, specifically, pricing and threat administration considering counterparty threat, and the XVA's credits, investment and Debt worth alterations.

New PDF release: The Handbook of International Trade and Finance: The

Meant to be used via the exporter interested in overseas revenues, finance, delivery, and management, or for these learning for educational or expert skills in foreign alternate, The guide of foreign alternate and Finance presents an entire clarification of the major finance components of foreign alternate – together with possibility administration, overseas funds and foreign money administration.

Extra resources for Alternative Investments and the Mismanagement of Risk

Sample text

Merrill Lynch has been a vendor of alternative investments for many years, promoting several funds and funds of funds. However, on 1 July 2002, this investment bank found the courage to write the following in its US Strategy Update: Cash has now outperformed the S&P 500 for the time period spanning the last 55 months (December 1997 to July 2002). 16 Add to the S&P reference made by Merrill Lynch all hedge funds and any other alternative investment vehicle, and you have a perfect quotation summarising in a nutshell the message Chapter 1 brings to the reader.

To begin with, one way to appreciate how much risk the end-investor assumes with funds of funds and special alternative investment vehicles (SAIVs) is to focus on the effects of volatility and liquidity. Market illiquidity and market volatility correlate among themselves, and with highly leveraged trading. Are Alternative Investments Inherently Risky? 31 Illiquidity and volatility magnify the risks A great deal of alternative investments positions, and trading associated with them, involve instruments which are not only inherently geared but also volatile and materially affected by unpredictable factors.

That is the gamble of private placements (see Chapter 1). Hedge funds specialising in small caps and in private equity would surely appreciate the reviewer’s message in his third bullet. But, I take exception to the reviewer’s second statement which I consider to be a lie. Geared instruments have a high sensitivity to the liquidity of markets. Hedge funds try to counteract this through diversification, but diversification has its own risks as we have just seen. Market liquidity and illiquidity are also characterised by cycles.

Download PDF sample

Alternative Investments and the Mismanagement of Risk by Dimitris N. Chorafas (auth.)


by William
4.5

Rated 4.30 of 5 – based on 46 votes