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Copyrighted Material Index A convertible, 106 MBS Index, 82 Adjustable-rate mortgages (ARMs), 97 stock-index, 137 Municipal Bond Index, 82 Agency securities. See Bonds Arnott, Robert, 84 BATS Global Markets, 52–53 Alaska, 91 Asian Development Bank, 87 Basis points, 20–21, 23–24, 32, 39, 44, 46–47, 48, 107, Alerian MLP Index, 117–118 Ask 109–110, 147, 149, 151, 153–154 Allied Capital, 113 premium, 141–142 benchmark Alternative assets. See Commodities, Real estate price, 5, 14, 27, 54–55, 66, 71, 94, 109, 116, 120, base metals prices, 131 Alternative Display Facility, 54, 55 132, 134, 142, 154, 162 CDS rate, 156 Alternative funds rate, 21, 149 commodities, 129 angel investing, 165–166, 170 Auctions, debt, 3, 18–20, 24–26, 30, 90 fund performance, 79, 128, 160–161, 164, funds of funds, 167 Australia, 113 168, 177 global macro, 166–167 Auto loans, 93 futures, 129 hedge funds, 63, 106, 113, 127, 165–169, 177 index, bonds, 81–83 long-biased, 167 B index, commodities, 174–175 long-short, 167 Backwardation, 135–136, 137 index, hard assets, 85 managed futures, 167 Bank for International Settlements (BIS), index, MLPs, 117 market neutral, 167 12, 150 index, stocks, 83, 125, 137 private equity, 63, 165–166, 169, 170 Bank of America, 100, 103 index, real estate, short-biased, 167 Merrill Lynch, 82, 175 index, REITs, 120–121 venture capital, 165–166, 170 Bank reserves, 36 interest rate, 8, 24, 32, 36, 97, 110, 147 Amazon.com, 164, 166 Bankers’ acceptances (BAs), 36 maturities, 49, American Depositary Bankruptcy. See also Eastman Kodak, Lehman mortgage-backed bonds, 95 Receipts (ADRs), 56 Brothers, Risk gold price, 65, 85 Shares (ADSs), 56 corporate, 21, 40, 54, 99–100, 103, 108, oil price, 70, 72, 131 Angel investing. See Alternative funds COPYRIGHTED152–153, 155 MATERIAL ratio, 58 Apollo Global Management, 168 municipal, 21, 88–90 REITs, 122 Apple, 51, 53–55, 116, 120, 139–140, 141–146, Barclays Capital, 65, 81–82 swap rate, 152 162, 166, 168 Aggregate Bond Index, 80 yield curve, 50 Arbitrage, 167 Aggregate Credit Index, 82 yields, 58 183 bindex.indd 183 5/30/2012 3:51:57 PM 184 ■ Index Benchmark EFFAS government bond indexes, 81–83 municipal, 87–92, 101, 159 Bills, 87–88 exchange codes, 54 private label, 94 Bonds, 88 Fair Value pricing, 45–46, 91 putable, 48, 49 Notes, 88 functionality cheat sheet, 179–180 revenue, 90 Berkowitz, Bruce, 113 generic pricing, 14, 134 secured, 42, 44, 129 Berkshire Hathaway, 140 IPO Index, 52–53 supranational, 87 Bernanke, Ben, 63–64 Indexes for Active Funds, 177–178 unsecured, 42, 44, 111 BGCantor, 82 News, 77, 90 Bondholders, 153–154 Bid North America REIT Index, 120–121 Book value, 57–58, 118, 122 premium, 141 Spot Commodity Index, 85 Boston Personal Property Trust, 161 price, 5, 14, 27, 54, 66, 71, 94, 109, 120, 132, 134, terminal, 70, 142, 168 Bottom-up analysis, 4 142, 154, 162 Valuation, 109 Brent, North Sea, 72–73 rate, 21, 149 Bond indexes, 81–83, 85 British Bankers’ Association, 36–37 Bid-ask spread, 4, 5, 14 Bond insurance, 90, 92 British Commonwealth, 12 Bid-to-cover ratio, 26 Bonds, 6, 8, 10, 12, 15, 16, 52, 55, 57, 63, 64, 66, 67, 68, Buffett, Warren, 140 Bidders 71, 72, 73, 75, 76, 77, 79, 81, 87–97, 100–103, Build America Bonds, 91 direct, 26 109–111, 117, 119, 125–126, 129–130, 135, Business development companies (BDCs), 166 indirect, 26 137, 140, 148, 149–150, 152, 156, 160–161, Bids, auction 163, 166–170. See also Funds, Futures, C competitive, 3, 25 Options California, 90–91 noncompetitive, 25–26 agency, 23, 87–89, 95, 178 Cambridge Associates, 178 Big Mac, McDonald’s, 17 asset backed (ABS), 93 Canada, 113 Bills, 9, 11, 18–24, 25–26, 27–32, 35, 38–41, 57, 81–82, callable, 48 Cantor Fitzgerald, 20 83, 87, 88, 92, 103, 126, 128, 135, 145, 149, convertible, 48, 49, 99, 103–107, 128, 140, Capital, 88, 100 150, 175 159, 167 requirements, 99–100 Agency, 88 corporate, 5, 9, 35–36, 38, 40, 42–50, 55, 99–100, spending, 122 Treasury, 9, 11, 18–24, 27, 30, 31, 35, 38–41, 113–114, 156, 159, 170 Capitalization (cap) rates, 75–77 81–82, 83, 145, 150, 175 general obligation (GO), 90, 92 Carried interest, 169 Blackstone Group, 77, 115, 168 government (Treasury), 18, 20–23, 24–33, 54, Case, Karl, 74–75 Bloomberg 87, 156, 159, 169 Cash, 7, 9, 10, 11, 18, 36, 38, 42, 43, 49, 50, 52, 56, 58, bond indexes, 43 high yield (junk or non-investment-grade), 63, 64, 66–67, 76, 119, 130, 147, 160, 165 BondTrader, 20–21, 27, 94 42–43, 50, 107–108, 110, 111, 177, 178 Cash flow, 40, 77, 103, 111, 115, 118, 122, 164, 170 Constant Maturity Commodity Indexes, inflation indexed, 28, 48 CBOE Holdings, 140 173–175 investment grade, 42–43, 50, 110, 177 Central Falls, Rhode Island, 89 country code, 141 mortgage backed (MBS), 87–88, 93–97, Certificates of deposit (CDs), 36 data, 41, 111 119, 159 Chicago Board of Trade (CBOT), 130–131 bindex.indd 184 5/30/2012 3:51:57 PM Index ■ 185 Chicago Board Options Exchange (CBOE), 131, gasoline, 69, 70, 73 Country of domicile, 177 140, 175 iron ore, 68 Coupon. See also Interest rate Chicago Mercantile Exchange (CME), 130–131, lead, 69, 131 rate, 26–27, 29, 44, 101 132, 142 livestock, 68–70. 71, 72, 86, 174–175 weighted average, 96 Citigroup, 88, 100, 103, 146, 164 heating oil, 69, 73, 137 Crack spread, 72–73 Clearinghouse, 37, 134–136, 148, 154 hogs, 70, 86 Credit card balances, 93 CMA Datavision, 154 natural gas, 69, 71, 115, 116, 137 Credit event, 152, 154 CME Group, 131, 140 nickel, 69, 131 Credit rating, 33, 40, 41–42, 49, 50, 91, 92, 110, Collateralized oil, 64, 68, 69, 70–73, 74, 116, 129, 131–132, 111, 153 debt obligations (CDOs), 94 135–136, 137, 161, 176 high yield, 42–43, 50, loan obligations (CLOs), 109 palladium, 68, 70 investment grade, 42–43, 50 mortgage obligations (CMOs), 94, 95, 96, 97, 109 platinum, 68, 70 services, 9, 21–22 Companies, 3 pork bellies, 70 scales, 22, 30 Commercial paper (CP), 38–42 precious metals, 68–70, 71, 174–175 Credit Suisse, 178 asset-backed, 42 silver, 68, 70 Crush spread, 73 dealer placed, 38, 39, 42 soybeans, 68, 69, 86 Currency, 6, 8, 12–18, 80, 153. See also Indexes, Risk direct issue, 38, 39, 41, 42 steel, 68 Australian dollar, 12 Commodities, 3, 4, 7, 10, 63, 64, 67, 68–73, 74, 79, steers, 86 British pound, 12, 80 85–86, 113, 116, 125, 129, 130, 161, 165, 166, tin, 69, 131 Canadian dollar, 12, 80 167, 170, 173–176. See also Gold wheat, 68, 69, 86, 130 Chinese renminbi, 15 agriculture, 68–70, 71, 72, 85–86, 113, 130, 131, zinc, 69, 131 codes, 14 137, 174–175 Commodity Research Bureau (CRB), 173–174 cross rates, 12, 14 aluminum, 68, 69, 131, 132–133 Commodity trading advisers, 167 deutschemark, 146 base (industrial) metals, 68–70, 71, 86, 131, Conduits, 38 devaluation, 15–16, 167 174–175 Constant dollar, 8, 12–18, 36–37, 45, 54, 56, 64, 66, 67, 71, cattle, 70, 130 default rate (CDR), 96 72, 79, 80, 87, 88, 101, 109, 116, 133, 146, 148, coal, 68, 69 maturity, 173–175 149, 152, 153, 154, 162. See also Dollar Index copper, 68, 69, 70, 131 prepayment rate, 96 euro, 12, 14, 80, 153 corn, 64, 68, 69, 132 Consumer price index (CPI), 6, 22, 28, 48 exchange rates, 15 cotton, 69, 72, 86 Contango, 135–136, 137 fixed rate, 15 electricity, 69 Conversion floating rate, 15 energy, 68–70, 71, 72, 74, 85, 113, 116, 131, premium, 103–104 Hong Kong dollar, 15 174–175 price, 103–106 intervention, 15 exchange-traded (ETCs), 161 ratio, 104–105 New Zealand dollar, 12 fiber, 72, 86 Cost basis, 117 pegging, 15, 16 food, 68, 69, 71, 72, 86 Counterparty, 128, 147. See also Risk reserve, 12, 87 bindex.indd 185 5/30/2012 3:51:57 PM 186 ■ Index Currency (cont’d ) Dollar Index, 81 Exchange-traded products (ETPs), 161. See also Swedish krona, 80 Dow Jones, 173, 178 Commodities, Funds, Notes Swiss franc, 12, 80, 146 Dow Jones Industrial Average, 83, 85, 125 Expiration. See Futures, Options, Swaps yen, 12, 80, 153 Drexel Burnham Lambert, 42 Curve. See Benchmark, Rate, Yield Duration, 30 F modified, 30 Face value, 17, 19, 20, 21, 26, 27, 29, 36, 39, 44, 46, 47, D 57, 91, 92, 95, 100, 101, 104, 105, 153, 154, Dark pools, 53 E Fairholme Fund, 113 Debentures, 44. See also Bonds Earnings yield. See Yield Fannie Mae (FNMA), 87–88, 93–94, Debt, 3, 4, 7–11, 18, 20–22, 26, 28–30, 33, 35–50, 55, Eastman Kodak, 40, 164 Federal Farm Credit Banks, 88 76, 79, 81–83, 87–97, 99, 103–111, 116, 119, eBay, 164 Federal (fed) funds, 36, 38, 41, 150 122, 127, 128, 145–146, 150, 152–154, 159, Einhorn, David, 113 rate, 16, 36 161, 166, 167, 169, 170, 175, 177, 178. See also Electronic trading, 13, 20, 26, 52–53, 54, 90, 95, Federal Home Loan Bank System, 88 Bonds, Loans, Money Market, Notes 132, 141 Federal Home Loan Mortgage Corporation. senior, 153 El Paso, 115 See Freddie Mac subordinated, 153 Products Partners, 115 Federal National Mortgage Association. Deposit, bank, 16, 17, 126 Emerging markets, 15, 17, 60, 71, 80, 87, 167, 176, 177 See Fannie Mae rates, 18, 80 Enterprise Products Partners LP, 115–117, 120, 168 Federal Reserve (Fed), 8, 9, 16, 18–19, 23, 25, 32, 36, Developed markets, 60 ETFs.
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