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March 2020

Pedagogy Coronavirus Disease (COVID-19) to Trigger Pandemic Bonds

The current Coronavirus Disease (COVID-19) outbreak will likely trigger payouts for $132.5 million in pandemic catastrophe bonds sponsored by the World Bank Group’s (WBG) Pandemic Emergency Financing Facility (PEF). This funding will be channelled to eligible countries to (...)

Pedagogy

Covered bonds, an asset class to discover

Pedagogy

After Green bonds, Water bonds

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July 2011

Pedagogy Inflation linked bonds’ mechanism

Inflation linked bonds are bonds whose principal is linked to inflation which allows their holders to protected against inflation as opposed to traditional bonds.

July 2011

Pedagogy Sovereign Wealth Funds

Sovereign Wealth Funds (SWFs) are state-owned or affiliated funds. The first type (by far the biggest) invests foreign exchange reserves, driven by trade surpluses and exports of natural resources.

July 2011

Pedagogy Private equity

Private equity funds invest in companies equities in order to take control of them. The shares held by these funds are not traded on financial markets. Their influence is moderate : According to Bain & Company, the global assets they hold is up to 3% of the value of (...)

June 2011

Pedagogy What is inflation break-even ?

The inflation break-even is the difference in yield between a conventional bond (coupon rate) and its inflation-linked (real rate) equivalent (the same issuer, same maturity ...) ...

May 2011

Pedagogy Back to the future, may 2011: Nobles Crus and Earth Element Fund

Yesterday they were introduced as innovatives products. Today, How far have they got and what are the prospects for tomorrow ? Two products in the spotlight this month: Nobles Crus or the blend of passion for wine and financial investment, and a quantitative systematic (...)

January 2011

Pedagogy TARN on REVERSE CMS

A major U.S bank has recently issued Target Accrual Redemption Note (TARN) on reverse CMS (Constant Maturity Swap). This product pays a coupon indexed on a reverse, capped and floored CMS until the sum of coupon payments reach a target (...)

October 2009

Pedagogy Rotating Mountain Range Options

A major European investment bank has recently launched a long-term hybrid investment vehicle: "Rotating Mountain Range". This product pays a coupon equal to the weighted sum of the performances of three assets, where the weights are adjusted after each observation (...)

October 2009

Pedagogy « Catastrophe bonds » or CAT bonds

Insurance companies issue this type of bonds to cover the risks associated with "disastrous" events such as earthquakes, typhoons, storms and hurricanes...

April 2008

Pedagogy What is Long/Short Equity ?

Hedge funds apply a vast array of investment strategies which can be more or less complex. In this article, we shall focus on the Long / Short strategy…

January 2008

Pedagogy What is CPPI (Constant Proportion Portfolio Insurance)?

CPPI or Constant Proportion Portfolio Insurance is a dynamic management technique that ensures a minimum guaranteed amount to an investor at the time of maturity

November 2007

Pedagogy Credit Default Swaps (CDS).

Politicians have, in general, a very rough knowledge on financial products, especially credit derivatives. In some cases, this may be a gap. Indeed, the icelandic prime minister is now aware of it...

October 2006

Pedagogy What is a Hedge Fund?

The expression ?hedge funds? is commonly used to describe a non-conventional investment fund, that is, a fund whose strategy does not include long term investments in bonds, stocks and cash markets...

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Pedagogy EURO STOXX 50® Total Return Futures

About Implied Repo Rate | Product Summary | Your Benefits Trading EURO STOXX 50® Total Return Futures | Product Structure | TRF Product Specifications | Motivation & Examples

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Pedagogy TARN on REVERSE CMS

A major U.S bank has recently issued Target Accrual Redemption Note (TARN) on reverse CMS (Constant Maturity Swap). This product pays a coupon indexed on a reverse, capped and floored CMS until the sum of coupon payments reach a target (...)

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Pedagogy What is CPPI (Constant Proportion Portfolio Insurance)?

CPPI or Constant Proportion Portfolio Insurance is a dynamic management technique that ensures a minimum guaranteed amount to an investor at the time of maturity

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Pedagogy Performance fee impact

These fees are far from being insignificant for investor returns. According to Duncan Wilkinson, CEO of Alpha Simplex, more and more hedge fund managers, especially in the United States, have decided to offer products without any performance fees; a trend that should (...)

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Pedagogy Invest in domestic chinese stocks with ETFS-E Fund MSCI China A GO UCITS

In May 2014, ETF Securities partnered with E Fund, one of the largest asset managers in China, to launch a physical exchange-traded fund (ETF) that tracks physical A-shares listed in China. It is the first UCITS ETF to track the MSCI China A (...)

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Pedagogy What is Long/Short Equity ?

Hedge funds apply a vast array of investment strategies which can be more or less complex. In this article, we shall focus on the Long / Short strategy…

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Pedagogy Eurex Market-on-Close Futures

Eurex Market-on-Close Futures (Eurex MOC Futures) are designed to significantly facilitate MOC trading since the index futures can be traded at the underlying cash market index close ahead of its actual publication.

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Pedagogy What is a dividend "future"?

A dividend future is a forward contract traded on an organized market, allowing taking a position on the amount of dividends paid by a publicly traded company to its shareholders for a specific maturity date. It is not necessary to hold shares in the company to intervene in (...)

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Pedagogy Infrastructure : A Growing asset class

Even if infrastructure investments shares some of the characteristics with fixed income (long term predictable yield), real estate (investing in physical assets) and private equity (leverage is used), its popularity is increasing among (...)

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Pedagogy Amundi Funds Absolute Global Dividend aim for 150 to 200M€ in managed assets over a period of 12 months

According to Warin Buntrock, fund manager of Amundi Funds Absolute Global Dividend in BFT Gestion, the investors feedback is encouraging. As proof, the fund, launched on 15th April 2013, is today 65 million worth in assets under (...)

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Pedagogy Sovereign Wealth Funds

Sovereign Wealth Funds (SWFs) are state-owned or affiliated funds. The first type (by far the biggest) invests foreign exchange reserves, driven by trade surpluses and exports of natural resources.

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Pedagogy New milestones achieved in Eurex’s futures on French government bonds

Eurex Exchange has recently set several new records in its Euro-OAT Futures. In August 2012, open interest exceeded for the first time the 100,000 threshold with 104,869 contracts. Trading volume in July also set a new record, both in average daily volume with about 19,600 (...)

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Pedagogy BNP Paribas L1 Equity World Low Volatility

The Fund BNP Paribas L1 Equity World Low Volatility seeks to outperform the MSCI World Index over a full market cycle with risk reduction objective and limiting tracking error risk level. Absolute volatility is targeted to be lower than the MSCI World (...)

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Pedagogy Credit Default Swaps (CDS).

Politicians have, in general, a very rough knowledge on financial products, especially credit derivatives. In some cases, this may be a gap. Indeed, the icelandic prime minister is now aware of it...

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Pedagogy MBS: Size, Depth & Liquidity

With a low volatility profile and steady yield, returns from mortgage-backed securities beat other medium and high-quality fixed income securities over time. The market has had a radical reform since it took a hit during the financial crisis; those who seek a truly (...)

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Pedagogy iSTOXX™ Europe Minimum Variance

The approach initiated by Ossiam’s research and management team intends to obtain an optimized portfolio that includes a selection of stocks where volatility is among the lowest in the investment universe

Focus

Managed Accounts

Managed Accounts : Comprendre le fonctionnement d’une plateforme | Avantages pour l’investisseur institutionnel ? Pour le gérant de « hedge fund » ? | Description du processus de sélection d’une société de gestion sur la plateforme | La plateforme de comptes gérés (...)

Les Derivés Total Return

Les Derivés Total Return : Est-ce que le marché du repo peut émerger comme nouvelle classe d’actifs ? | Indices Total Return Futures (TRF) cotés sur Eurex Exchange : Une solution pour négocier un taux de repo action implicite sur un marché organisé via un EURO STOXX 50 Index Total (...)

Contrats à terme Market-on-close sur Eurex

Contrats à terme Market-on-close sur Eurex : Un avantage pour le marché : une solution listée pour négocier la base | Champs d’application | Principaux avantages | Réduction des coûts de transaction

Selection: Products

Kiosk Alternatives to financial markets investments

The financial investment is not limited to financial markets assets and the current uncertainties obviously feed such thoughts. Indeed, there are many investment vehicles that could create value in a portfolio.

Regulation Solvency II: Advantage convertible bonds

The results of QIS 5 confirmed that convertible bonds bear low capital cost. A balanced-profile convertible bond portfolio with optimized convexity therefore obtains a moderate intrinsic SCR whilst benefiting from «equity» (...)

Innovation T2S or Target2-Securities platform

T2S will provide a single technical platform for processing settlement instructions, in a harmonised manner, for 28 CSDs in Europe, in different currencies and at the same price for both domestic and cross-border (...)

Interview  Francois Montenay : « Variable Annuities, a new generation of life insurance»

These financial products with complex mechanisms for the uninitiated, are now booming in France in a context of uncertainties over pension compensation...

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FR Pédagogie Qu’est ce qu’un fonds CPPI (Constant Proportion Portfolio Insurance) ?
Read comments Update May 2017

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