Some traders estimate precipitation derivatives to have a potential which increases even that of temperature derivatives. Precipitation derivatives can be used both for hedging and marketing purposes for a diverse number of possible end users. However, the complex way of measuring precipitation,...

This paper analyzes the current use of incentive-fee-concepts for mutual funds in Germany. Following an empirical analysis about the relevance of these methods, the different methods of calculation and the influence of different parameters are described. Further on it explains the impacts of...

The aim of portfolio insurance strategies is to put a floor on the value of a stock portfolio by progressively selling stocks and buy safe, short-term debt securities as stock prices fall. This paper analyzes the current static and dynamic methods in use and explains their pros and cons.