TAILIEUCHUNG - Lecture Multinational financial management - Topic 8: Carry trade and covered interest arbitrage

Lecture Multinational financial management - Topic 8: Carry trade and covered interest arbitrage. In this chapter, students can compute profits from carry trades and covered interest arbitrage, students understand the function and use of a credit default swap (CDS). | Topic #8: Carry Trade and Covered Interest arbitrage L. Gattis The Pennsylvania State University 1 Finance 407: Multinational Financial Management Review 2 The yen is selling at a 1% premium for one year delivery. . Treasury yields are 3%. What is the Japanese sovereign yield according to IRP? A. B. C. D. E. Learning Objectives 3 Learning Objectives Students can compute profits from Carry Trades and Covered Interest Arbitrage Students understand the function and use of a Credit Default Swap (CDS) The Yen Carry Trade 4 A “carry trade” in one in which you borrow a low interest rate currency and invest in a high interest rate currency. Throughout the 2000’s one of the most popular trades by hedge funds was the yen carry trade when Yen borrowing interest rates were less than 1% and . Treasuries were near 3%. Example (assume spot price remains constant at ¥100/$) Borrow 1 million yen at 1% for one year Sell ¥1 million for $10,000 (¥1,000,000/(¥100/$)) .

• Tài chính doanh nghiệp
• Financial management
• Multinational financial management
• Quản lý tài chính đa quốc gia
• Multinational finance
• Carry trade
• Covered interest arbitrage
• Financial statement
• International trade transactions
• Fundamentals of financial management
• Financial statement analysis
• International financial management
• Quản lý tài chính
• Exchange rates
• Financial environments
• Overview of Financial Management and the Financial Environment
• The financial environment
• Forms of business organization
• Determinants of stock pricing
• Financial instruments
• Practical financial management
• Financial background
• Financial statements
• Financial planning
• Financial system
• Financial ratio
• IT financial management
• Setting the scene
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• Parameters influencing IT financial management
• Costs of IT financial management
• More quantifiable benefits
• Overview of roles
• Hospitality financial management
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• Analysis of financial reports
• Analyzing financial statements
• Management decision making
• Foundations of financial management
• Review of accounting
• Financial analysis
• Financial forecasting
• The financing decision
• Financial leverage
• Current asset management
• Paper F7
• Revision kit 2016
• Management Financial
• Financial Management Exam Review
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• Study text 2016
• Lecture Multinational financial management
• International financial reporting standards
• Foreign exchange risk management
• Financing decisions
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