Most research on the performance and risk of hedge funds are based on calculations that justuse the data from one index provider. Also most product providers and even more and moreinvestors are using hedge fund indices for benchmarking purposes. As some academic articlespointed out, the world of...

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

Directors’ Dealings have been extensively analysed especially for U.S. and U.K.stock markets. This event study is meant to bridge the gap for Germany, Italy andthe Netherlands. The question to be investigated is whether board members andother company insiders earn abnormal returns with market...

Behavioral finance theory is used for the foreign exchange market toshow, that the profit of a typical trader is mainly due to the higher number of correctpositions. Using behavioral finance the amount of loss trades is larger than60%, however the individual gains are larger than the losses...

Convertible bond issues increase considerably since 1990. The papershows that these issues are more than just the combination of a bond and an option.The pricing depends on the share price, the shares volatility, the interest rate,and the interest volatility , the credit spread, and the...

Underlyings of weather derivatives in Europe tend to be average temperaturecompared to heating (cooling) day in the USA because of a smaller volatility intemperature. The derivatives are priced using as burn analysis. Using a gas utilitycompany, hedging techniques are shown using temperature...

The paper deals with the evaluation of Collateralized Debt Obligations forinvestment purposes. CDOs are classified in the asset backed environment. Itsspecific risks (market, timing, recovery, agency) are discussed. To understand theportfolio aspect, the concept of the diversity score is...

The paper analyses the factors influencing the credit spread of € denominated bonds andcredit default swaps. The regression shows a significant difference of the credit spread ofcorporate floaters compared to straight bonds. The steepnes of the yield curve leadssurprisingly to lower credit...

The Paper shows the evaluation of credit risky products. Default probabilities for riskadjusted cash flows or risk adjusted discounting are the backbones for the evaluationof bonds and credits. The second approach is using the market value of shares andtheir implied volatility to calculate the...