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Absolute Revenue Strategy And Tool Selection

2011/7/13 17:49:00 38

Absolute Revenue Strategy Tool Selection

  

Bank

The selling of financial products has made us realize that investors are not only eager for high-yield products, but also pursuing more absolute investment.

As long as financial products are higher than the same period deposits in the same risk, investors are likely to abandon bank deposits and choose financial products.

So there is a broad prospect of absolute revenue.


Absolute revenue products need absolute use.

Profit

How can we build a strategy of absolute return?

Stock is not a good target for building this strategy, because its volatility is too large.

We can make use of the existing financial products in the stock market to build some absolute income strategies to meet the demand of absolute return.

For example:


First, ETF arbitrage, convertible bond arbitrage and stock index futures arbitrage are all strategies to capture the same price deviations in different forms.

Among them, the special paction mechanism, such as purchase and redemption, debt to equity swap and futures maturity settlement, guarantees the convergence of these deviations, and obtains absolute gains irrelevant to market fluctuation.


Second, stock index futures Alfa strategy.

At the same time, Alfa, who is pursuing the pcendence index, is often beset by systemic risks and market fluctuations. With the help of stock index futures short selling mechanism, it is convenient for us to hedge the risks of these systems, and Alfa, originally regarded as a relative return, has become the absolute return we expect.


Third, dynamic hedging strategies such as CPPI and OPPI are designed to control downside risks while sharing upward directional earnings to a certain extent.

The strategy also actively manages funds with fixed income products and further optimizes risk return structure.


In order to satisfy as much as possible

Investment

We need to use various trading mechanisms and strategies to build the financial products we need.

It is reported that Guotai Junan Securities Asset Management Co will launch the sovereign benefit arbitrage one from July 11th, and hedge market system risks through various arbitrage strategies, capture the pricing bias caused by market inefficiency, supplemented by the market neutral strategy and the cash management strategy of bond investment, and pursue absolute returns irrelevant to market fluctuations. It is a low-risk product. For high-end customers, the starting point is 1 million yuan, the number of households is not more than 200, and the issuance period is 300 million yuan, which can be purchased at Guotai Junan and China Construction Bank.


 
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