Forex Investment and Currency Trading

Description
A Multicallable Range Accrual Note / Deposit (or MCRA) is a range accrual note/deposit where the fixed coupon accrues on days when the agreed index falls within the pre-defined range, with no coupon accrual when the agreed index falls outside of the pre-defined range. To enhance the yield further, a multicallable feature (or Bermudan Swaption) is added, giving the note issuer the right to terminate the structure on a number of agreed future dates.
Application
In this example, the coupon on the note/deposit has been enhanced significantly (5.5%, as compared to 3.60% money market yield) due to the combination of the range [...]

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Yield curve is used to analyze maturity risk in the credit markets. It applies to any fixed income market that has a series of maturities, such as an individual county’s debt or a series of expiration months for interest rate futures.
Yield curves are plotted for a given day or series of days.
Yield curves provide graphic representation of the maturity risk in a given market. Along with displaying a risk/reward curve for investors, it can also help identify unusual economic conditions for the issuer such as a liquidity crisis or recession.
A normal yield curve shows yields rising as maturities increase. This [...]

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Both FAS 133 and IAS 39 are based on common principles.
These include:

Derivatives should be recorded on the balance sheet as either assets or liabilities
The appropriate value for derivatives is their fair value
Changes in fair value of derivatives should be recorded directly in earnings each period unless special “hedge accounting” is applied
Special hedge accounting treatment should be limited

What does this mean?

For countries that have yet to adopt International Financial Reporting Standards (IFRS) and are currently accounting for derivatives off-balance sheet, adopting IAS 39 will create greater transparency
If certain types of hedging relationships or hedging instruments do not qualify for special hedge [...]

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Hedge funds are a type of leveraged fund, which refers to any number of different forms of speculative asset management funds that borrow money for speculation based on real assets under management. For instance, a hedge fund with $100 million under management can leverage those assets (through margin agreements with their trading counterparties) to give them trading limits of anywhere from $500 million to $2 billion. Hedge funds are subject to the same type of margin requirements as you or we are, just with a whole lot more zeroes involved.
The other main type of leveraged fund is known as a [...]

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