|August 31, 2001, Issue VIII
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Asset Management Software e.Briefing is a biweekly e-communication bringing you the latest in software and technology trends that impact institutional, governmental and corporate asset managers, treasurers and CFOs. Readers will gain insight on important issues facing fixed income, equity, international and real estate investors and risk managers. You will learn tips, techniques and case-study solutions to common problems that affect how well you run your business. In this issue:
Fixed Income Yield Calculations
The calculation of yield on a fixed income security
takes into account the time value of money by discounting the stream of future
cash flows to a present value. There are two primary price-yield formulas plus
some deviations that are used for various special cases. Handling odd last
payments is the tricky part.
Equity swaps are a relatively new tool used by portfolio managers to exchange or
"swap" returns across debt and equity asset classes. The processing and
accounting requirements for such swaps are quite challenging, especially as
their use and structure becomes more and more specialized.
Buying and Selling Loans
Some asset managers achieve their portfolio performance objectives by reallocating
loan assets across portfolios. In effect, they realize a gain or loss on
the sell side of the transaction while selling the asset at a discount or
Forming a Captive
More and more companies are realizing cost reduction and better risk management by
pursuing alternative insurance arrangements. As insurance markets harden, the
attractiveness of options like captives or risk retention groups increase. Having
the knowledge of the cost/benefit tradeoff puts you in an advantaged position
with your broker.
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08.17 Puzzler Solvers:
Bruce Aird, Bessemer Investment Management
Amit Grover, Salomon
Bill Heym, Barclays Capital
Byron Mikalson, Mikalson Portfolio Management
Chris Gordon, PricewaterhouseCoopers
Frederic Bach, UBP Asset Management
Christopher Moore, North State Financial Mgmnt.
John Benedict, Virginia Investment Counselors
James Ferns, KPMG Consulting
John Yeoman, John C. Yeoman & Company, LLC
John R. Thomas, JRT Research, Ltd.
Mike Lazarski, Leapnet
Lorraine Cattai, Legg Mason Real Estate Services
Mike Godack, Corbyn Investment Mgmt
Michael Heeger, KPMG Consulting
Michael Matheson, ZENetics
Michelle Pierce, Frank Russell
Pat Armstrong, UBS Investment Prooducts
Ron Beyer, Omega Financial Corp
Ralph Walter, Kayne Anderson
Sameer Bhosle, CSFB
Shafiq Ebrahim, Financial Engines
Tim Sheridon, Harris Bretall
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