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Constant Proportion Portfolio Insurance (CPPI).

Constant proportion portfolio insurances (CPPIs) are long-term investments, and few static trading strategies can generate consistently high returns for 7 to 10 years. A manager can improve the returns on a CPPI strategy by: ■ Selecting portfolios ... Read >

Substitution of Credits (CPPI, NAREIT).

When investing in static CDOs, the investor's knowledge on the underlying credit pool is used only at the time that the investor signs the contract. After that, the investor can merely hope for the best performance of the investment with no option to dyna... Read >

Performance Comparison in CPPI Setup.

Now that we have seen how different hypothetical unlevered strategies can have different expected returns and volatilities, we can consider their performance when levered in the context of Constant proportion portfolio insurances - CPPI. When building a C... Read >

Distressed securities. Bankruptcy in the United States vs. Other Countries

For all practical pur¬poses, the relevant legislation for distressed securities investment in the United States is the Bankruptcy Reform Act of 1978, which applies to all bankruptcies filed since 1 October 1979. This enactment is referred to as ''The Bank... Read >

Distressed securities. Turnaround Partners

Often, distressed securities investors solicit the help of experienced executives to manage the troubled companies. In the case of the WorldCom/MCI bankruptcy, one such investor was quoted in the Wall Street Journal, when the investor urged Michael D. Cap... Read >