Finshares Investments’ Post

How investors can manage the risk of losing money? 💰 Curious to know the answer 🤔 The solution is Credit Default Swaps (CDS) A credit default swap is a derivative contract that effectively transfers the credit risk of fixed income products. Here’s how it works: the buyer of debt can purchase a CDS to shift the risk to another investor. In return, this investor agrees to compensate them if the debt issuer defaults on its obligations. I've explained the detailed working of Credit Default Swaps in the attached PDF. Let's explore this financial tool together! Stay tuned and follow Vishesh Kumar for more insightful content. 💸 #learning #creditdefaultswap #finance #grow

Q1 2024 couldn’t have been much different to Q1 2023. This was certainly true in the #securitiesmarkets. A decline in fees for fixed income assets and the lowest #short loan value across European equities seen for over a decade. To find out more details and to hear from two market #experts Jim Moroney and Michael Brooks from eSecLending register for our upcoming Q1 webinar below https://lnkd.in/ezQaBb9i

Capital Security A security that forms a component of equity capital (core capital) including ordinary equity (ordinary shares, common stock), both voting and non-voting, and preferred shares/ preference shares. Capital securities also include debt-like convertible or hybrid financial instruments (with a feature of conversion into equity). The purpose of a bank’s core.. https://lnkd.in/dWyJqSAV #banking #bank #security #securities #instrument #capital #funding #funds #equity #debt #finance #financial #financialeducation #education #fincyclopedia #financialencyclopedia #فنسايكلوبيديا

ALTERNATIVE FUNDING OPTIONS Alternative Funding is finance beyond the traditional – it is an alternative to channels such as banks and capital markets. #alternativefunding

Here we quantify how much securities lending income has added to fund returns, demonstrate the benefits of our value-based approach, and illustrate how much securities lending income can help offset some of a fund’s expense ratio.

Are you worried about Financial Services Reform (Basel 3.1, T+1)? Are you interested in upcoming Money Market Fund Reform? Do you need help identifying new markets and asset classes? I have over 33-years experience as a trader in Global Markets running businesses in Securities Finance, Repo, Securities Lending, Treasury and FICC. I'm a management consultant and I can help you re-engineer your business and find new markets and opportunities. I can help you to fine-tune or overhaul your existing strategy to make more money. I'm your trusted partner in the world of Capital Markets. I deliver nuanced, effective, and bespoke strategies, helping you navigate your unique challenges and objectives with absolute precision and expertise. I create Management Strategies helping you to negotiate Regulation & Market Reform, protecting and optimising revenue, to adeptly handling Crisis Management. Leverage my extensive involvement in Industry and Central Bank Committees. Until recently I co-chaired the UK Money Market Code Sub Committee at the Bank of England Committee and was a member of the Influential Working Group on Sterling Risk-Free Reference Rates which recommended SONIA as the replacement for Libor. I've delivered senior level coaching and training in Securities FInancing and have also trained new traders, lawyers, accountants and support areas in Global Markets. WHY WORK WITH ME? This is what people say about me: Bank of England: "Glenn is the 'go to' source of market intelligence for many years. He is an especially calm but practical voice in times of market stress." LCH: "Glenn has been an important member of our Repoclear customer advisory group while at two different banks, always engaging in debate, helping to set and drive direction for the industry to make markets safer, more transparent and more efficient." Dive deeper: www.secfinsolutions.com #secfinsolutions #consulting #strategy #strategyconsulting #newmarkets

Hello Connections, I’ve been diving into the intricacies of the money market and wanted to share some insights with you. Understanding the money market is crucial for anyone involved in finance or investing, as it deals with short-term funding and liquidity needs. Here’s a brief overview of key money market instruments: 💰 Money Market: This market deals with short-term financial instruments, typically with maturities of up to one year, aimed at meeting liquidity and short-term funding needs. 🔍 Key Instruments Include: 1.Interbank Lending: Short-term loans between banks. 2.Treasury Bills (T-Bills): Short-term government securities. 3.Certificates of Deposit (CDs): Time deposits offered by banks with a fixed interest rate. 4.Commercial Paper: Unsecured, short-term corporate debt. 5.Repurchase Agreements (Repos): Short-term borrowing backed by collateral. Exploring these instruments can enhance your understanding of financial markets and improve your strategic decisions. Check out the content to gain valuable insights that might benefit your future financial endeavors.

Bond Products Protecting Passive Institutions Bond products play a crucial role in safeguarding passive institutions' portfolios. These instruments provide stability and reliable income streams, buffering against market volatility. Whether through treasury bonds, investment-grade corporate bonds, or bond index funds, passive investors utilize these vehicles to mitigate risk and preserve capital. By diversifying across various bond products, institutions can fortify their portfolios against economic downturns and fluctuations in other asset classes. Bond products are essential for protecting the portfolios of passive institutions. They offer stability and reliable income, shielding against market volatility. Whether through treasury bonds, investment-grade corporate bonds, or bond index funds, bond futures passive investors utilize these tools to mitigate risk and preserve capital. Diversifying across various bond products is key for institutions to strengthen their portfolios against economic downturns and fluctuations in other asset classes. Moreover, in Treasury markets, there are numerous intelligent strategies to enhance protection and generate alpha. There are so many smart ways to add protection and create Alpha in Treasury markets.

Cash instrument An instrument whose value is established or determined directly by the markets. Examples include market-pegged deposits and loans, as well as readily transferable.. https://lnkd.in/dJDkiVNR #cash #instrument #cashmanagement #instruments #finance #fincyclopedia #financialencyclopedia #financialeducation #glossary #dictionary #financial_dictionary #financial_glossary #monetary #financialasset

#riskmanagement #finance #investmentbanking #bankcapital #privatecredit #syntheticsecuritisation #risktransfer #bankregulation #alternativeassetmanagement Are bank regulators spending enough time on this? Is the Basle III endgame distracting all? The whole “taking private” of finance needs more oversight. As Marc Rowan points out, funding long term assets with long term liabilities or perpetual capital is a beneficial development for financial stability. However if such assets are then “back door financed” (=relevered) through the banking system we could have an unanticipated concentration of systemic risk if volumes get too high. It was the same when banks bought and held third party super senior tranches of synthetic CDOs and never distributed the risk on such in their own “risk transfer” transactions prior to the GFC. Asset quality deterioration resulted in signicant write downs under mark to market methodology and we had a massive problem given the magnitude of risk that had been retained within the banking system. This can be addressed via appropriate capital charges. Are capital charges on retained super senior tranches in SRTs and other transactions such as NAV loans high enough? Is the RWA mitigation given too generous?