A Report And Presentation Should Inform An Investor Who Is Intelligent, But Not A Finance Specialist
The goal of the project is to give you a chance to apply the tools developed in this class to deal with issues that an investor faces every day.
Your report should answer questions such as: a) Where does the security trade? What are the transactions costs? How is the security bought and sold? Can you short sell the security?
b)Theoretically, what should the risk and return characteristics of the security be? What has the actual performance of the security been like?
c) How would you use the security as part of a portfolio strategy?
The written report should be in the form of an executive summary (2-3 pages, 3 pages max)
Topic: Credit default swaps (include discussion on cds-bond basis) http://www.investopedia.com/articles/optioninvestor/08/cds.asp Introduction - Dan
How it Works, and Why Buy? - Dan
Valuation and Strategy - Chris
Role in the 2008 Financial Crisis - Sodaksh Khullar
Marketplaces and Regulations - Derek
Dan Shepherd - Intro/How It Works
You may know concept from market crash a few years ago
It was an unregulated market in 2007 and is still unregulated
High degree of speculation
Designed to transfer fixed income credit exposure between two parties,
Most common form of…