(14).RISK MANAGEMENT-SUMMARY.

Risk Management Summary. In the last 11 posts (4 to 14 posts)we have described 12 risks associated with investing in fixed income sec...

(13).EVENT RISK, SECTOR RISK & OTHER RISKS.

Event Risk. Occasionally, the ability of an issuer to make interest & principal payments is seriously & unexpecttedly chang...

(12).RISK MANAGEMENT-POLITICAL OR LEAGAL RISK.

Political or Legal Risk. Sometimes the government can declare withholding or other additional taxes on a bond or declare a tax -exe...

(11).RISK MANAGEMENT-EXCHANGE RATE OR CURRENCY & VOLATILITY RISK.

Exchange rate or Currency Risk. A non dollar-denominated bond (i.e. a bond whose payments occur in a forign currency) has unknown U...

(10).RISK MANAGEMENT-INFLATION OR PURCHASING POWER & MARKETABILITY OR LIQUIDITY RISK.

Inflation or Purchasing power Risk. Inflation risk or purchasing power risk,arises because of the variation in the value of cash flo...

(9).RISK MANAGEMENT-YIELD CURVE OR MATURITY RISK.

Yield Curve or Maturity Risk. In many situations, a bond of a given maturity is used as an alternative to another bond of different ...

(8).RISK MANAGEMENT-CREDIT RISK OR DEFAULT RISK.

Credit Risk or Default Risk. Credit or default risk,refers to the risk that the issuer of a fixed income security may default (i.e. ...

(7).RISK MANAGEMENT-TIMING FOR CALL RISK.

Timing For Call Risk. As explained in the previous post,many bonds contain a provision that allows the issuer to retire,or "cal...

(6).RISK MANAGEMENT-REINVESTMENT RISK.

Reinvestment Risk. The cash flows received from a security are usually (or are assumed to be ) reinvested.The additional income fr...

(5).RISK MANAGEMENT-MARKET OR INTEREST RATE RISK.

Market or Interest rate risk. The price of typical fixed income security moves in the opposite direction of the change in interest r...

(4).RISK MANAGEMENT.

Risk associated with investing in fixed income securities. The return obtained from a fixed income security from the day it is purchas...

(3).CODING OF COSTS.

Coding of costs. CIMA defines a code as "a system of symbols designed to be applied to a classified set of items to give a brief...

(2).INTERNATIONAL ACCOUNTING STANDARDS.

List of International Accounting Standards IAS 1 - Presentation of Financial Statements IAS 2 - Inventories IAS 3 - Consolidated F...

(1). INTERNATIONAL FINANCIAL REPORTING STANDARDS.

International Financial Reporting Standards International Financial Reporting Standards ( IFRS ) are standards and interpretations ad...