Monday, February 24, 2020

Hedging Strategy Essay Example | Topics and Well Written Essays - 500 words

Hedging Strategy - Essay Example By considering the Treasury bond futures hedging strategy, he can minimise his risk as it is an effective instrument of risk control and can also enhance his returns. As Treasury bond futures cover up a broad range of maturities from the bonds of long term to short term notes, so it will help Clark to construct trades depending on the disparities in the movements of interest rates alongside the yield curve. There is negative connection between the fluctuations in interest rates and the bond prices. The increase in the interest rates is bad for bonds because when the rate of interest rises, the shareholders or investors in the bond fund prefer to liquidate or settle their shares. Due to this, the finance manager might be compelled to sell its bonds prematurely to raise sufficient cash in order to meet its requests of redemption. This could have a pessimistic effect on the regular price of bond fund (Forbes, 2013). Conversely, a fall in the interest rates results in the increase in the bond prices. This happens because, if rates of interest fall after the purchase of bond, the worth of bond will rise as investors will not be able to purchase a new bond with a high coupon rate. In this situation, the value of bond will be more than the actual value. Consequently, it will be traded at a premium (Bodie et al, 2009). Clark should consider the short term hedging strategy. Investment in the short term bonds is recommended because long term maturities bond would be hit tremendously when there is an increase in the rates of interest. Along with this, he should consider the individual bonds but require being cautious with the issuer’s credit quality. Clark also needs to be sure that the company is monetarily strong and proficient to repay his principle on the maturity of bond. A short term bond is suggested because this will facilitate Clark not to become locked in a low interest rate for an extended period (Forbes, 2013). The reason behind suggesting the

Friday, February 7, 2020

General nursing skills Essay Example | Topics and Well Written Essays - 3000 words

General nursing skills - Essay Example I will also be discussing them in this assignment how important the skills I garnered will be in my future profession. The purpose of reflection is basically looking back at an event or time and analysing the emotions, feelings and other things involved at that point in time. Reflection usually involves questions such as â€Å"What went well?† and â€Å"How did I feel at that time?† Normally, reflection is done spontaneously, not based on formula. It normally occurs when feelings, emotions and thoughts about a particular event gradually surface (Atkins & Murphy 1994). However, there is no use in reflecting upon an activity if I the skills that I acquired during the activities and others that I improved upon will be going to waste. This is where the NHS framework is important. NHS knowledge and skills framework provides a comprehensive and consistent framework for review and development of a staff member. It determines and describes which knowledge and skills are important for staff to apply during at work and to deliver excellent services (Agenda for Change Project Team 2005). The NHS knowledge and skills framework has several purposes. NHS knowledge and skills framework is based on good people management. It is involved in looking at how people would like to be treated and more importantly, how they should be treated. Because of these, one of the purposes of NHS knowledge and skills framework is to check on the development of services by investing in staff members. This is done so that the service provided has good standards and it meets the needs of the public (Agenda for Change Project Team 2005). Another purpose of the NHS knowledge and skills framework is to support the learning process of the staff members, whether as a team or as an individual. It promotes effective learning and development. It aims to support the learning process of the members of the staff by letting them grow in various ways and