Hedging Strategy Essay Example | Topics and Well Written Essays - 500 words

Hedging Strategy - Essay Example By considering the Treasury bond futures hedging strategy, he can minimise his risk as it is an effective instrument of risk control and can also enhance his returns. As Treasury bond futures cover up a broad range of maturities from the bonds of long term to short term notes, so it will help Clark to construct trades depending on the disparities in the movements of interest rates alongside the yield curve. There is negative connection between the fluctuations in interest rates and the bond prices. The increase in the interest rates is bad for bonds because when the rate of interest rises, the shareholders or investors in the bond fund prefer to liquidate or settle their shares. Due to this, the finance manager might be compelled to sell its bonds prematurely to raise sufficient cash in order to meet its requests of redemption. This could have a pessimistic effect on the regular price of bond fund (Forbes, 2013). Conversely, a fall in the interest rates results in the increase in the bond prices. This happens because, if rates of interest fall after the purchase of bond, the worth of bond will rise as investors will not be able to purchase a new bond with a high coupon rate. In this situation, the value of bond will be more than the actual value. Consequently, it will be traded at a premium (Bodie et al, 2009). Clark should consider the short term hedging strategy. Investment in the short term bonds is recommended because long term maturities bond would be hit tremendously when there is an increase in the rates of interest. Along with this, he should consider the individual bonds but require being cautious with the issuer’s credit quality. Clark also needs to be sure that the company is monetarily strong and proficient to repay his principle on the maturity of bond. A short term bond is suggested because this will facilitate Clark not to become locked in a low interest rate for an extended period (Forbes, 2013). The reason behind suggesting the

WASHINGTON MUTUAL BANKRUPTCY CLASS ACTION LAWSUIT Research Paper - 1

WASHINGTON MUTUAL BANKRUPTCY CLASS ACTION LAWSUIT - Research Paper Example The total collapse of WaMu would have been disastrous for the Government. Besides, the FDIC is not in the banking business and a last minute deal was brokered between the Government and JP Morgan Chase. The same day as the takeover, Chase purchased the bank from the FDIC for a little less than two billion and agreed to assume all secured debts, minus equity shareholders. With that Chase became the one of the largest banking firms in the country (Dash). WaMu’s parent company, Washington Mutual, Inc., was left with just twenty-five billion dollars in assets minus liabilities and filed a voluntary petition for Chapter 11 Bankruptcy protection the very next day, September 26 in its home state of Delaware. The Bankruptcy itself has been an ongoing issue for three years now and is still in litigation. With the FDIC and Chase agreeing with WaMu in principal, the company’s proposal was that seven billion dollars was to be distributed to its creditors. However, the plan was rejected on September 14, 2011 by US Bankruptcy Judge Mary Walrath in Wilmington. Siding with the plaintiffs, she ordered the two sides into mediation. As such the company’s stock plummeted more than seventy per cent in the days following the judge’s ruling. Why then did a bank formerly known as the â€Å"Wal Mart of banking† fail so completely? It was for the same reasons a lot of financial firms fell during the summer and fall of 2008. During most of the first decade of the twenty-first century, credit was cheap and easy to come by. The so-called â€Å"sub-prime† consumers, those with far less than stellar credit, were able to obtain credit cards and home mortgages when they would have probably been turned down any other time. WaMu was almost leading the charge, with its Providian credit card division. It also controlled a likewise now

Unemployment and the economy Coursework Example | Topics and Well Written Essays - 750 words

Unemployment and the economy - Coursework Example This has been shown to be as a result of three major reasons which are, the aging population, cyclical decline as a result of historical patterns in the past recession and other factors including the consequences of the Great Recession. In the run-up to 2008, it was discovered that the participation rate decline was conditional on age. However, the decline rate for prime-age men and women was offset by the increase in the participation rate for older workers. According to discoveries, there have been disruptions in the labor market due to the impacts of the 2007-2009 recession. Population growth has slowed coupled with declines in the labor force participation rates. It has been projected that the decade, that follows, will bring forth an aging workforce that grows slowly and declining overall labor force participation. After the decline in the 2001 recession, the Labor has maintained a steady rate of 66.0 percent from 2004-2008. As a result of shifts in the labor due to the baby balloon generation, it is seen that these shifts do not have an injurious influence on the unemployment rates. Labor force participation rate is a measure of the proportion of non-institutional civilian population either employment or looking for employment. By the year 2011, 85.2 percent of college graduates participated in the labor force which exceeded the previous year by 1.9%. The participation rate of those with advanced degrees by that time was measured to be at 91.0 percent. This rate was found to be the same for both women and men, disregarding the types of degrees received (Anderson et al., 2009). Since the year 2005, US population and labor force trends have shown that out of the total population estimates, half of it has always been an active labor force. The rapid growth in the labor force in the US over the past decades has been attributed to the growth in the size of population as well as the increased rates of participation of women in the labor force

People, Management & Organisations Case Study Example | Topics and Well Written Essays - 2500 words

People, Management & Organisations - Case Study Example It is clear from the case study that Cox’s Container Company is suffering from several internal issues related to the workplace culture and organizational behaviour. It is highly important for an organization to adopt and implement effective change management process in order to overcome the current issues and challenges. However, it is highly important for the Cox’s Container Company to implement change management process in the organizational culture in order to enhance strategy development and decision making process. In addition to this, it will help the organization to overcome the current issues that is affecting the profitability and business performance of the organization. This case analysis will outline and analyze the current internal issues and problems related to the organizational structure, organizational behaviour and work culture of the company. In addition to this, this report will discuss about motivation and change management theory that can be imple mented in the management of the organization in order to overcome the issues. Lastly, the study will provide some recommendation plans in order to overcome the current issues. Being one of the leading and profitable organizations, the management of the Cox’s Container Company failed to overcome the organizational behaviour related issue. The organization was founded by Harold Cox. This part of study will outline and analyze the problems that are affecting the business performance of the organization. The management of the organization was following family ownership structure. It can be considered as the consideration, adoption and implementation of the centralized decision making process. The organization faced several issues due to the adoption of centralized decision making process. It is highly important for an organization to ensure effective strategy development and decision making process in order to overcome the issues (Buchanan and Huczynski, 2010, p.73). Poor

Hinduism and Buddhism Essay Example | Topics and Well Written Essays - 750 words

Hinduism and Buddhism - Essay Example For Krishna, you can escape the rebirth in one of two ways, either by jnana-yoga or bhakti-yoga. This paper provides a vivid discussion and a comparison between the different concepts that are practiced in Hinduism and Buddhism. As already pointed out, in Hinduism, the powerful Krishna (Thompson 39 Ch.7, Verse 8), states that one can escape the rebirth in one of two ways, either the jnana-yoga or bhakti-yoga. The jnana-yoga basically denotes the path of self mastery and knowledge of Brahman and Atman as well as the realization of the unity of these two. Jnana-yoga uses the exercise and intellect as a way of understanding the true Self as well as being aware of the eternal Self, which is God (Thompson 29 Ch.5, Verse 27). Therefore, jnana-yoga helps n the probing of the nature of the Self by asking the question, "Who am I?† It is worth noting that jnana-yoga is not merely an intellectual exercise, but may involve intellect in realizing that God’s nature must be pure Beingness, but to know the Self, one must Be the Self or exercise what is referred to as being patron of oneself (Carter and Mahinda 31 Ch.XII, Verse 160). Jnana-yoga is mainly used when one intends to experience God’s omnipres ence and it also mediates through a focus on the question â€Å"Who am I?† On the other hand, bhakti yoga refers to the spiritual path and practice that is practiced by those that subscribe to Hinduism faith that focuses on building love and devotion for God (Thompson 45, Ch.2, Verse 9).

Current School Finance Issues Paper [w5d7-i] Essay

Current School Finance Issues Paper [w5d7-i] - Essay Example If the State acknowledges the bid, then a private school can start receiving funds for their transport costs. Bidding renewals are to be done annually. However, to every rule, there is an exception. If a school happens to have vehicles owned by their District, then there is no need to renew their bid. Additionally, some schools may have opted to enter into a joint agreement with another. This implies that one school may apply on behalf of another. Similarly, some schools may be part of a coordinated transportation agency as asserted by Say student (2008). The Board of education is also given the mandate to reject applications for transport financing in the event that applications are made poorly. On the other hand, there is a maximum student number that can be covered by and district board. This implies that when the optimum number has been reached then all other applications will be rejected. Additionally, in the event that a private school is applying for transport funding yet it only deals with special children, then the board of education is mandated to reject their application. Similarly, if a school provides only vocational training or it provides only technical skills, then they are not eligible for state funding. When student's residential areas are over twenty miles away from the school, then they may not necessarily get access to State funds. Federal States also require that children meet certain age criterion in order to enroll for the program. For instance, in the State of New Jersey, children who are between kindergartens and age twelve are eligible for transportation services provided by the District in elementary schools. It should be noted that it is not mandatory for private schools to receive funding from their respective District school boards. But they have the option of utilizing other options available for them. For instances, it is not mandatory for a private school to receive funding in the event that their residents are located beyond two and a half miles and two miles for high schools and elementary schools respectively. There are also cases in which a school is located out of State but may wish to get funding from a school district Board. This is only permissible in the event that the school is located in a county with a third class rating. Additionally, funding may also be granted to those individuals who are found in counties that have a population greater than eighty thousand. However, this population may not exceed one hundred and twenty thousand people as put forward by the Toronto Catholic District School Board (2007). . Some private schools may be not for profit organizations. Such schools are also not mandated to receive transport funding, but may gain access given the fact that most of them are have tax exemption status. However not for profit institutions are usually required to display solid evidence bout their status. This is done by bringing an affidavit that will act as a form of evidence. There area also cases in which some schools have met all other criteria enlisted above but happen to be located twenty miles away from their schools. The legislature normally examines such schools on an annul basis. Once they find that these people meet the right criterion then they may

History of Western Civilization Essay Example | Topics and Well Written Essays - 1000 words

History of Western Civilization - Essay Example The key enlightenment figures began with sets of philosophers that began to perceive reality in an alternative manner. Descartes and Lebiniz were two of the leading figures with the concept of self – evident reasons to create ideals. This was followed with concepts such as through Newton, with created a scientific basis that experience and experiment were the two formations of knowledge, as opposed to reason and belief. The philosophies continued with the artists of the time, such as Voltaire, who created the belief that science should be regarded as ahead of the metaphysical. Each of the philosophers during this time based the Enlightenment on reason as opposed to spirituality and belief that was practiced in the culture (Porter, 3). The concept of the enlightenment was followed by scientists, politicians and religious leaders who either accepted or rejected the notion of reason and science being before belief. The scientists were split into several groups that experimented i n different ways. For instance, the materialists, such as La Mettrie, created an understanding of how the mind and the soul coincided and how the physical was a reflection of the spiritual. David Hume, Darwin and Newton followed this with disagreements that led into the practical, such as basic physics and mechanics of how the world worked. This was followed by politicians, such as Adam Smith and William Burke, which believed that science should be combined with politics for more practical and reasonable associations with the functioning of society (Porter, 25). The goal of the enlightenment figures was to take out the superstition and beliefs that led society. The main association was to create an understanding of abstract reason. It was believed that the power of reason could create a status quo that could lead into a Utopian future. The beliefs were followed by the understanding that those who used reason and rationalization for all concepts could easily find a way to reform soci ety and culture. The reason was one which was required to come from scientific discoveries and beliefs which gave a physical and practical understanding to how the world worked and what was done in the world. Within these thoughts were several associations with how this related to production. The reason was followed by scientists who were focused on discovering and observing attributes in nature as well as politicians and philosophers that were finding reasonable ways to rule and guide society and culture into new forms of knowledge (Porter, 2). The concept of reason that the key thinkers in the Enlightenment held also led to specific ideologies about religion. Most believed that religion was led by superstition and ignorance, as opposed to having knowledge about how the world functioned. This was followed by the concept of having a sense of freedom for religion. The historical time frame had led society into forced religion, specifically with the Catholic Church. This was followed by outbreaks that divided the church into sectors. During this time, there was a movement forward with the belief that religion should be free choice. Most who were considered a leader in the Enlightenment didn’t believe in Church based concepts and instead insisted that they were evils of society. Instead, there was a belief in a natural religion that allowed free thought and natural