The Investment Decision
Selecting Investments
The Investment Decision
• Obtain a clear picture1. How much is available, where is it and in
what currencies?2. How easily could it be brought together? Within borders Across borders FX regulations Central bank reporting
The Investment Decision
• For how long are the funds available?1. Seasonality2. Cyclicality3. Other business plans giving rise to surpluses
and deficits
The Investment Decision
• Broad considerations1. Shape of the yield curve2. Interest rate expectations3. Credit risk of counterparties and maybe
countries4. Capital and market risk5. Returns available
The Investment Decision
6. Tenor of instrument 7. The instruments themselves (SLY) 8. Currency and possible hedging reasons 9. Basis for calculations, accruals, discount etc 10. Tax aspects 11. Policy
Recommended
