This text brings together a number of research studies, all of which examine the behaviour of foreign exchange rates. The main focus of the collection is on empirical characterization of high-frequency exchange rate data. The pioneering studies demonstrate and explain, amongst other things, the regular patterns in intra-day foreign exchange rate activity, the effects of macroeconomic news of rates and analyze the profitability of technical trading rules in these markets. The collection should be of use to students, academics and practitioners who are interested in exchange rate dynamics.

Many large corporations delegate investment decision-making authority to their divisions. Because they are better informed, divisional managers should be able to make better decisions than corporate headquarters. However, they can use this informational advantage to pursue their own interests. The objective of this work is to analyze the problem of delegated decision-making within firms when investment projects are characterized by the possibility to make subsequent decisions after the initial investment decision has been made. By analyzing this question, the monograph combines and unifies two important lines of literature: on the one hand the literature on controlling investment decisions, on the other hand the investment valuation literature.

Praise for "Invest Like A Fox. . . Not Like A Hedgehog"

"We've known Bob for years as Trustee and Chairman at Fairfax County Employees' Retirement System. Under Bob's leadership, Fairfax County has moved ahead of the curve by pursuing forward-looking and innovative investment solutions that are enormously beneficial for its members. We pay very close attention to what Bob has to say."
--Dan Bernstein, Director of Research, Bridgewater Associates, Inc.

"A thoughtful, thorough evaluation of the dynamic processes required to achieve investment success. This book clearly establishes that the only formula for success is a disciplined focus on the way to analyze markets, not on statistical formulas that trigger preprogrammed responses. The essential focus on managing risk and the willingness to pursue strategies that diverge from the crowd are pearls of wisdom that would be worthwhile reading for individual and institutional investors alike."
--Thomas H. Weaver, CFA, Managing Director, FrontPoint Partners, Morgan Stanley Investment Management

In the competitive world of investing, most individuals earn less than 7% annually--even during good markets. Individual investors are not the only ones reaping lower than expected returns. Many institutional investors, such as mutual funds and pension plans, frequently earn less than their targeted goals.

While making money in today's investment arena can be difficult, the key to success lies in acquiring the adaptability of a fox and abandoning the rigid beliefs that define a hedgehog. With Invest Like a Fox . . . Not Like a Hedgehog, financial professional Robert Carlson will show you exactly how this can be accomplished.

Written in a straightforward and accessible style, "Invest Like a Fox . . . Not Like a Hedgehog" outlines a proven approach to long-term investing that focuses on reducing risk while improving returns. Filled with in-depth insights and expert advice, this detailed guide will change the way you think about investing and assist you in developing an investment strategy that will work in today's dynamic markets.

Expert guidance on managing credit risk in bond portfolios

Managing Credit Risk in Corporate Bond Portfolios shows readers how to measure and manage the risks of a corporate bond portfolio against its benchmark. This comprehensive guide explores a wide range of topics surrounding credit risk and bond portfolios, including the similarities and differences between corporate and government bond portfolios, yield curve risk, default and credit migration risk, Monte Carlo simulation techniques, and portfolio selection methods.

Srichander Ramaswamy, PhD (Basel, Switzerland), is Head of Investment Analysis at the Bank for International Settlements (BIS) in Basel, Switzerland, and Adjunct Professor of Banking and Finance, University of Lausanne.

The idea that each country should have one currency is so deeply rooted in people's minds that the possibility of multiple and concurrent currencies seems unthinkable. Monetary systems contribute to problems of high unemployment and social distress during financial and economic crisis, so reforms to increase the responsiveness and flexibility of the monetary system can be part of the solution. This book discusses 'monetary plurality', which is the circulation of several currencies at the same time and space. It addresses how multiple currency circuits work together and transform socio-economic systems, particularly by supporting economies at the local level of regions and cities. The book shows that monetary plurality has been ubiquitous throughout history and persists at present because the existence of several currency circuits facilitates small-scale production and trade in a way that no single currency can accomplish on its own. Monetary plurality can improve resilience, access to livelihoods and economic sustainability. At the same time, it introduces new risks in terms of economic governance, so it needs to be properly understood. The book analyses experiences of monetary plurality in Europe, Japan, and North and South America, written by researchers from East and West and from the global North and South. Replete with case studies, this book will prove a valuable addition to any student or practitioner's bookshelf.

In a Ponzi scheme, new investments are used to pay existing investors, to cover the cost of salespersons, and to finance the Ponzi schemer's satisfying lifestyle. Although Charles Ponzi recruited investors in Boston in 1919 and died in 1949, his design and mode of operation are alive and well today. Indeed, losses from Ponzi schemes in the United States are equal to losses from shoplifting. Ponzi schemes catch in their net highly sophisticated individuals and institutions as well as low-income and middle-income investors, and these schemes have attracted investors all over the world, in Russia, England, India, Albania, Romania, Portugal, Costa Rica, and elsewhere. Looking into the innumerable cases of Ponzi schemes throughout the years, Tamar Frankel observes that even though patterns began to emerge in the stories of con artists and their victims' behavior, the main puzzles still remain: How do con artists dazzle and lure wealthy and educated individuals and representatives of large institutions to hand over huge sums of money? How do con artists divert investors' attention from the soft spots of their stories? And while there are so many books and articles about Ponzi schemes, their warnings and constant advice on how to detect and avoid con artists go unheeded. In The Ponzi Scheme Puzzle, Frankel explores con artists' fascinating power of persuasion and deception, and analyzes their subtle signals that mimic truth and honesty. She identifies the reasons for the local and global success and longevity of such schemes and seeks to understand the nature of the con artists and their victims. She combines the many stories of Ponzi schemes, derived mostly from court cases and newspaper articles, to show the patterns of such frauds, the nature of the con artists, and character of their victims. These patterns tell us much about human nature, about our society, and about ourselves. The book first analyzes the design and pattern of the con artists' attractive offers and how they hide deceptions, then deals with the ways in which schemes are advertised and sold. Next, it focuses on the core of con artists' success, then discusses the characters of con artists and their victims. Finally, Frankel offers a number of observations on the lessons we can learn from these stories and analyses. She concludes that our attitude to con artists is ambivalent and uncertain perhaps because their behavior is so close to the behavior of honest people; or perhaps because they act like the social leaders with whom they are likely to mingle, or perhaps their actions are necessary to shake up a complacent society. Therefore, she writes, self-protection from charming, dangerous con artists must involve self-examination: once we recognize our own tendencies we can better protect ourselves from their toxic attraction.

Foreign Exchange in Practice, now in its 3rd edition, is the single reference to the foreign exchange market any financial practitioner needs to have. It explains the concepts involved in foreign exchange and their application to real-life situations. The book was originally developed as a textbook for the Citibank Bourse Course, an intensive course available to clients and staff of Citibank to improve their mastery of these complex markets. The course has been taught in 50 countries since 1975. This new edition includes the Euro amongst its currencies, expansion of material on interest rate concepts, exotic options and value at risk.

This book focuses on the latest developments in the Asia-Pacific community in terms of how deregulation and privatization are bringing more risk to energy companies. In the light of these market changes, interest in energy risk management has grown substantially and is becoming a fiduciary responsibility of energy companies. As energy trading, power exchanges and hedging techniques establish themselves in the oil, power and gas sectors, so then do newer derivatives markets emerge in LNG hedging, whether derivatives or freight hedging. Fusaro and James, as seasoned market practitioners in the region, focus on these market changes and examine the future of Asian energy hedging.

Growth in the derivatives market has brought with it a greater volume and range of interest rate dependent products. These products have become increasingly innovative and complex to price, requiring sophisticated market models that capture the full dynamics of the yield curve. A study of the evolution of interest rate modelling theory places these models in the correct mathematical context, allowing appreciation of their key assumptions, concepts and implications. The book guides the practitioner through the derivation and implementation of a variety of models that account for the characteristics and irregularities of observed term structures.

Three issues shape the current debate on asset management: The restructuring of the management process to integrate new investment products, the necessity to reform pension schemes and last but not least the achievement of a globally co-ordinated regulatory framework. These challenging tasks benefit from objective guidance by scientifically substantiated Asset Management Standards. The current discussion's main focus on governance issues matches the established structural components of the Asset Management Standard's systematic classification. Numerous innovations called for a nearly complete revision. Main topics are now: Enhancement of the regulatory framework and co-ordination between the US and the EU and among EU members. Securing sustainable funding for retirement provisions after the dot.com bubble and the ongoing debate on reforming PAYG schemes. As a consequence the new edition offers again a reliable source of information on the major issues in asset management.

Advances in Quantitative Asset Management contains selected articles which, for the most part, were presented at the Forecasting Financial Markets' Conference. Forecasting Financial Markets' is an international conference on quantitative finance which is held in London in May every year. Since its inception in 1994, the conference has grown in scope and stature to become a key international meeting point for those interested in quantitative finance, with the participation of prestigious academic and research institutions from all over the world, including major central banks and quantitative fund managers. The editor has chosen to concentrate on advances in quantitative asset management and, accordingly, the papers in this book are organized around two major themes: advances in asset allocation and portfolio management, and modelling risk, return and correlation.

Investing in Corporate Bonds and Credit Risk is a valuable tool for any corporate bond investor. All the most recent developments and strategies in investment in corporate bonds are analyzed included with qualitative and quantitative approaches. A complete and up-to-date investment process is developed through the book, using many examples taken from banking practice. The growing significance of derivative instruments and credit diversification to bond investors is also analyzed in detail. Investment professionals; Corporate finance staff; Portfolio Managers; Senior Managers; Risk Managers; Consultants; Trading and Sales Staff; Quantitative Analysts; Credit Analysts; Regulators MBA courses

This book contains original readings on Reserves Management for central banks and sovereign wealth funds. It aims to outline best practice in respect of strategic asset allocation, facilitating knowledge-sharing across organizations and encouraging collaboration and dialogue between reserves and asset management specialists in the organizations.

An in-depth guide to making gold a serious part of your portfolio

Gold, the long forgotten store of value that was once the center of the global financial system, suddenly matters a great deal again. It has become a leading asset by virtue of its strong performance, and its booming demand has made it the only financial asset that remains in an uninterrupted bull market. And yet gold remains one of the least-owned financial assets in investment portfolios today.

"Hard Money" helps investors move beyond the simple, yet widely accepted notion that gold makes sense in today's financial environment, and explores ways to magnify potential investment returns driven by precious metals. This reliable resource examines the investment vehicles (bullion, stocks, derivatives, and even rare coins) and strategies (aggressive, conservative, passive, and variations) aimed at beating the price of gold as it rises, and ways to protect a portfolio should the metal decline.Identifies five key drivers that should continue to push gold higher in the years aheadExplores the ins and outs of investing in gold and making this precious metal a part of your portfolioExamines the pros and cons of multiple ways to buy gold via coins, ETFs, mining and royalty stocks, and other investment vehiclesAuthor Shayne McGuire is a highly-regarded expert on gold

Written in a straightforward and accessible style, "Hard Money" offers key strategies to enhancing returns with new methods for investing in gold.

In the face of the recent financial crisis there is increased focus on long-term investment strategies. This is particularly true for institutional investors who manage our retirement savings. Simultaneously there is increased demand that financial assets be invested with an understanding of long-term environmental and social sustainability. Responsible investing provides a long-term sustainable investment strategy that values environmental, social and governance (ESG) factors in investment decision-making. Responsible Investing has always had a broad mandate. Put simply, it is a long-term sustainable investment strategy that seeks to reduce risk in investment portfolios through managing ESG issues in today 's corporations. The Next Generation of Responsible Investment explores this topic in an edited volume intended for those with an interest in finance and business.

Written primarily for business managers and government officials, this is a comprehensive and extremely timely handbook on how to successfully initiate and implement joint ventures and direct investments in China. The authors combine in one volume an appreciation of the nuances faced in the negotiation of U.S.-Chinese joint ventures, an examination of the investment environment in China and an assessment of its past traditions, present policies, and emerging problems. Case studies of a variety of actual joint ventures are especially valuable for readers involved in or planning to open negotiations in China. Several chapters assess the impacts of the events in Tianamen Square on foreign direct investment in the country.

The book opens with two chapters which examine the reasons for China's open policy and the responses of foreign investors to the new policy. A group of chapters then explores the country's investment, cultural, and legal environments and their likely impacts on joint venture negotiations. Turning to an examination of Chinese markets and production capabilities, the authors assess consumption patterns, decision making, customer/supplier relations, local sourcing problems, transportation, the availability of skilled labor, management, and R&D. They go on to analyze the contributions of foreign direct investment, including the role of transnational corporations, and present a step-by-step guide to negotiating a joint venture in China and implementing the agreement reached. Finally, the authors look at prospects for development and modernization in China, particularly in terms of the trend towards recentralization following the Tianamen Square upheaval. In addition to business development managers, students in international business programs will find "Direct Investment and Joint Ventures in China" an indispensable resource.

This book recommends and examines the various approaches to incorporating an accurate measure of risk into the appraisal of an international investment. It considers the way in which decisions on international investment projects are taken and how they should be. It critiques and integrates existing theories, including the global capital asset pricing rule of financial theory, theories of strategy making and the real options approach, to show how risk should be incorporated into the present value formula and its various elements to produce a clear decision rule.

"Corporate Governance" is a new text which considers the problems surrounding governance and proposes solutions to help restore investor confidence in the corporate world. The book is intended for board members, corporate executives, regulators, auditors, creditors and analysts seeking a concise analysis of the governance issues facing financial and nonfinancial corporations round the world. The book is fully international in context and includes real life examples and cases to emphasize the practical nature of governance problems and solutions.

The book aims to prioritise what needs mastering and presents the content in the most understandable, concise and pedagogical way illustrated by real market examples. Given the variety and the complexity of the materials the book covers, the author sorts through a vast array of topics in a subjective way, relying upon more than twenty years of experience as a market practitioner. The book only requires the reader to be knowledgeable in the basics of algebra and statistics.

The Mathematical formulae are only fully proven when the proof brings some useful insight. These formulae are translated from algebra into plain English to aid understanding as the vast majority of practitioners involved in the financial markets are not required to compute or calculate prices or sensitivities themselves as they have access to data providers. Thus, the intention of this book is for the practitioner to gain a deeper understanding of these calculations, both for a safety reason - it is better to understand what is behind the data we manipulate - and secondly being able to appreciate the magnitude of the prices we are confronted with and being able to draft a rough calculation, aside of the market data.

The author has avoided excessive formalism where possible. Formalism is securing the outputs of research, but may, in other circumstances, burden the understanding by non-mathematicians; an example of this case is in the chapter dedicated to the basis of stochastic calculus.

The book is divided into two parts:

- First, the deterministic world, starting from the yield curve building and related calculations (spot rates, forward rates, discrete versus continuous compounding, etc.), and continuing with spot instruments valuation (short term rates, bonds, currencies and stocks) and forward instruments valuation (forward forex, FRAs and variants, swaps & futures);

- Second, the probabilistic world, starting with the basis of stochastic calculus and the alternative approach of ARMA to GARCH, and continuing with derivative pricing: options, second generation options, volatility, credit derivatives;

- This second part is completed by a chapter dedicated to market performance & risk measures, and a chapter widening the scope of quantitative models beyond the Gaussian hypothesis and evidencing the potential troubles linked to derivative pricing models.

Since the publication of the 2nd edition of The Credit Risk of Complex Derivatives in 1997, the world of derivatives has gone through a period of dramatic change in the external operating environment, product and market characteristic and risk management techniques. In the light of these changes, the text has been substantially reorganized, updated and expanded. Several new chapters have been added including: derivative losses risk governance and risk management efforts regulatory initiatives and advances credit risk portfolio models Aimed at clients, intermediaries and regulators, this new edition will be focussed clearly on risk education, risk management and risk disclosure in order to make participation in derivatives more secure, transparent, efficient and beneficial. MARKET 1: Senior Managers; Risk Managers; Compliance Managers; Consultants; Trading and Sales Staff; Quantitative Analysts; Credit Analysts; Regulators MARKET 2: MBA courses

Praise for Stock Index Futures & Options "Everything you wanted to know about global stock indexes in one place." —Tom Basso CEO, Trendstat Capital Management "With twenty years of professional experience behind her, Susan Abbott Gidel is the perfect person to present this intricate overview of today’s futures and options markets. Included is everything a beginner needs to know to understand the world of derivatives." —Robert R. Prechter Jr. President, Elliott Wave International

This book analyzes Africa's unprecedented economic growth, the state of its financial sector, and the varied opportunities for Islamic finance investors. It considers the role - potential and realized - of Islamic finance in fostering financial inclusion in areas such as banking, microfinance, capital market development, insurance, and private equity business. The book stresses that investing in Africa through Islamic finance will open new markets, ensure higher profit margins, diversify risk, and create business competition; and that these changes that will provide financial products that can satisfying the desires and beliefs of all consumers and unlock the real potential of the continent's financial system. The book also looks into the rise of international interest in Africa and concludes by scrutinizing the challenges impeding further economic growth, as well as the specific barriers that need to be addressed in order to promote the implementation of Islamic finance. Investors, policymakers, and academics ready to confront these challenges will find much of value in this book.