The investment diversity desired by households is far greater than most businesses have a desire to satisfy. Most firms find it simpler to issue “plain vanilla” securities, leaving exotic variants to others who specialize in financial markets. This, of course, creates a profit opportunity for innovative security design and repackaging that investment bankers are only [...]
Archive of posts tagged Finance
The treasurer’s role
Traditionally, the role of the treasurer and of the middle office was the in-house policeofficer. The role of position keeping fitted in this domain. The treasurer may reduce losses according to how effective these risk management structures prove.
Thus, the treasurer acts as the paymaster and policeman of the modern corporation. This is a job function [...]
INVESTMENT MANAGERIAL CONTROL
A successful financial dealing environment requires unification of the various species of investors.
1. Managers require a high level of people interaction skills, of which risk management is only one.
2. Successful trading needs an instant eye for distinguishing a good buy from a dud.
3. Recent entrants of the risk managers, including the quants and geeks, who [...]