Reasons for the low and even negative bond yields

Reasons for the low and even negative bond yields

This paper focuses on EC3214 Financial Economics II. The Excel file ‘Yield on ten-year Tbills’ in Moodle contains US daily yields on 10-year Treasuries (in percent) for you to verify or to track the data over the period October 2014 to July 2010.

EC3214 Financial Economics II-The Excel file ‘Yield on ten-year

Instructions
The Excel file ‘Yield on ten-year Tbills’ in Moodle contains US daily yields on 10-year Treasuries (in percent) for you to verify or to track the data over the period October 2014 to July 2010. At the bottom of the brief summary, there are some questions that you will need to address in writing the essay.

Make sure that the essay is your own individual work and that you do not use external help. Do not copy from anywhere else. You should include a reference section at the end of the essay, and use an appropriate style of referencing to write it out. Wikipedia is not an acceptable source of reference and you will be penalised for including it in the reference section. Please write clearly, and structure your essay so that it is presentable and flows nicely. Clearly explain any models you refer to and discuss implications of their results.

Low bond yields in the 2010’s

The unconventional monetary policies followed by several central banks since 2008 has led to an increase in the demand for bonds, thus increasing the price of bonds and pushing bond yields much lower than historical average yields. For example, in February 2015 10-year bond yield were 2% in the US, 1.6% in Spain, 0.4% in Germany and Japan and -0.04% in Switzerland.
These low and especially negative bond rates are exceptional and have raised the question as to why bond investors are willing to accept such low bond yields. Unconventional monetary policies (quantitative easing or QE) that push up the demand for bonds and thereby increase bond prices are usually seen as the major reason for the low bond yields (remember the negative relationship between bond prices and bond yields).

Despite these low bond yields, investors have recently earned very favourable returns from bonds. For example, in 2014 the returns from the BlackRock Euro Bond Fund A2 EUR was 11.40%.  The total returns from investing in bonds consist of two parts: the yield on the bond, or the periodic interest rate payments, as well as potential capital gains or losses (selling the bond before maturity at a price higher or lower than the purchase price). In 2014, falling bond yields was the consequence of increased demand for bonds, leading to higher bond prices and thus capital gains for bond investors.

EC3214 Financial Economics II

Address the following issues in your write-up (see instructions above):

Firstly, Discuss some reasons for the low (and even negative) bond yields that prevailed at the beginning of 2015, by investigating themes like: Demographic changes among investors in industrialised nations; Currency gains from exchange rates; Negative Inflation; and Capital Regulations and Liquidity Requirements of institutional investors.

Secondly, Discuss the sustainability of these low bond yields.

Thirdly, Discuss the relationship between bond yields and capital gains that can be earned when investing in bonds. In other words, explain why bond investors earned relatively high total returns on bond funds in 2014, despite the record low bond yields at the time.

Fourthly,  Provide some reasons why bond investors were willing to accept negative bond yields in early 2015.

EC3214 Financial Economics II

Additional Sources/ references that you may want to consult to augment your knowledge

Buttonwood (2015). Accentuate the negative: Why investors would opt to lose money. The Economist January 24, 2015.
http://www.economist.com/news/finance-and-economics/21640373-why-investors-would-opt-lose-money-accentuate-negative

Oliver, S (2019). Global growth slowing, plunging bond yields & inverted yield curves – not terminal but shares are due a pull back. AMP Capital, March 26, 2019. https://www.ampcapital.com/au/en/insights-hub/articles/2019/march/global-growth-slowing-plunging-bond-yields-and-inverted-yield-curves

Bhansali, V and Emons, B (2015). Why the Bond Market Is Yielding Negative and What Negative Yields Mean for You. Pimco.
http://europe.pimco.com/EN/Insights/Pages/Why-the-Bond-Market-Is-Yielding-Negative-and-What-Negative-Yields-Mean-for-You.aspx

Huebscher, R (2015). Gary Shilling – Why You Should Own Bonds. Advisor Perspectives, February 17, 2015.
http://www.advisorperspectives.com/newsletters15/Why_You_Should_Own_Bonds.php

Causes of Turkish financial and economic crisis

Causes of Turkish financial and economic crisis

Explain the causes of the recent Turkish financial and economic crisis that started in 2018. What effect did it have on 1) the Turkish economy and 2) the global economy?

Causes of the recent Turkish financial and economic crisis

Firstly, Explain the causes of the recent Turkish financial and economic crisis that started in 2018.

Secondly, What effect did it have on 1) the Turkish economy and 2) the global economy?

Thirdly, What kind of fiscal and monetary policies were implemented by Turkey?

Fourthly, What are the challenges that remain for the Turkish economy?

Your well-written paper should meet the following requirements:

Be 4-5 pages in length, which does not include the title page, abstract, or required reference page, which are never a part of the content minimum requirements.

Use Saudi Electronic University academic writing standards and APA style guidelines.

Support your submission with course material concepts, principles and theories from the textbook and at least two scholarly, peer-reviewed journal articles.

Review the grading rubric to see how you will be graded for this assignment.

More details;

What caused Turkey economic crisis?
The crisis was caused by the Turkish economy’s excessive current account deficit and large amounts of private foreign-currency denominated debt, in combination with President Recep Tayyip Erdoğan’s increasing authoritarianism and his unorthodox ideas about interest rate policy.
Why is inflation so high in Turkey?
Currency depreciation has been a key factor behind Turkey’s inflationary pressures but other issues, including concerns over the central bank’s independence and a diplomatic crisis with the U.S., fueled those losses.
What is going on in Turkey economy?
Turkey’s currency remains battered, while its foreign debts remain vast. Inflation and joblessness are alarmingly high. Economic growth is minimal, and anxiety considerable amid the sense that more trouble lies ahead. This is playing out as Turkey contends with political uncertainty after the shocking rebuke of Mr.

 

San Francisco Federal Reserve economic research

San Francisco Federal Reserve economic research

This is an assignment that discusses the San Francisco Federal Reserve economic research. The paper is essentially for economists and also analysts.

San Francisco Federal Reserve economic research

You are an analyst at the San Francisco Federal Reserve. The regional branches of the Fed all publish bulletins that contain summaries of interesting economic research. The people who read these bulletins are typically economists or other trained analysts who work at the Fed or other government offices; these are individuals who are generally too busy to read academic journal articles but who want to stay on top of the latest research. Your boss has asked you to write a summary (750-800 words = roughly 3-4 pages, 12-point and double-spaced) for the next bulletin of one of the articles from the following list:
One Hundred Years of the Economic Review: The Top Twenty Articles:
http://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.101.1.1
Your summary should have about a paragraph to answer each of the following questions:
What is the key hypothesis tested and what are the empirical findings?
How is the study connected to previous research?
Then, what economic theory/model of behavior do the authors use to form their hypothesis?
Identify, what data do the authors use and what is their empirical strategy (statistical methods/case studies)?
Lastly, what other factors do the authors mention that should be considered in evaluating their results?

Include a word count at the end of your article. Also,  note that if your article is too long, it means you will need to think hard about what can be cut but if your article is too short, you will need to think just as hard about what you might be missing.

Evaluation criteria

I will focus on the following specific areas when grading:
1.     Article content. Most importantly, have you summarized the paper accurately and completely? Have you accurately identified the key question(s) in the paper, and the authors’ answer(s)? Also, have you included all the relevant information so that an uninformed reader would have a clear idea what the article is about?
2.     Voice. Is the tone and style appropriate for this audience?
3.     Overall clarity. I will be evaluating the readability, clarity and style of the paper overall

Subaru’s Mr Survey Monitors Customer Satisfaction Research

Subaru’s Mr Survey Monitors Customer Satisfaction Research

This is an assignment that discusses the Subaru ‘s Mr. Survey Monitors Customer Satisfaction Research. The paper investigates the roles that marketing research plays in the understanding of customers.

Subaru’s Mr. Survey Monitors Customer Satisfaction Research

Qualitative Assignment 4 instructions
Firstly, the students are to read the assigned textbook reading, proceed to the website entitled Subaru: “Mr. Survey” Monitors Customer Satisfaction and read the 5 other articles available in Module/Week 5. Then, after viewing the video found at this website and reading the articles, create a Word document that addresses the assignment deliverables. The assignment deliverables are below and require the student to attempt all.

This is a MBA graduate course, so submit the requisite amount of theory and analysis/discussion for each question. Cursory, short answers are not acceptable. Provide the necessary scholarly attention to these questions. A satisfactory answer will require a minimum of 1500 words, with 3 relevant resources. This does not include the course textbook.

Upload this assignment into the submission link and title your submission accordingly (LastName_BUSI614_Section#_Qualitative4).

Assignment Deliverables:
1.     Firstly, ensure you discuss the role that marketing research can play in helping Subaru understand why its customers are devoted to the brand.
2.     in order to expand market share in the current hypercompetitive automobile market, Subaru must foster and build customer loyalty. Define the management decision problem.
3.     Then, define at least 4 marketing research questions based on the above management decision problem.
4.     Fourthly, discuss the role of qualitative research in understanding the devotion of consumers to a particular automobile brand.
5.     Later, which specific qualitative research technique(s) should be used and why?
6.     If a survey is to be conducted to understand consumer preferences for various automobile brands, which survey method should be used and why?
7.     Lastly, can Subaru make use of causal research? If yes, how?

Lastly, ensure you use the APA format and style in referencing and citing of the paper.

Business feasibility analysis on industry and market business idea

Business feasibility analysis on industry and market business idea

This is an assignment that focuses on a feasibility analysis on industry and market. The paper also discusses if the business has profit potential.

Feasibility analysis on industry and market

Assignment 2: Feasibility Analysis

“A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceive, needs to be modified, refocused, or changed dramatically. (Or perhaps even scrapped altogether.)” (Abrams, as cited in Scarborough & Cornwall, 2015, p. 237). With this assignment, you will be addressing the fundamental question: Does this business have profit potential?

Referring to the same business you either started or purchased in the first assignment. Write a three to four (3-4) page paper in which you: Conduct a feasibility analysis in which you research: Industry and Market Feasibility Product or Service Feasibility Financial Feasibility Entrepreneurial Readiness Based on your assessment, does the business idea need to be modified, changed significantly, or abandoned? (Note: If you abandon the business idea, then you will need to select and analyze a new business that has profit potential.) Include at least two (2) references outside the textbook.

Your assignment must follow these formatting requirements: This course requires use of Strayer Writing Standards (SWS). The format may be different than other Strayer University courses. Please take a moment to review the SWS documentation for details. (more information and an example is included in the Strayer Writing Standards left menu link). Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date.

The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: Describe and analyze the necessary activities and key decisions to start a small business. Use technology and information resources to research issues in small business management. Write clearly and concisely about small business management using proper writing mechanics.

Dan Elisa and Fred have worked together as Yellow Gardeners

Dan Elisa and Fred have worked together as Yellow Gardeners

Dan, Elisa and Fred have worked together as Yellow Gardeners for the last five years. They chose to trade as a partnership under the name Yellow Fingers and Co. The business has flourished, and they think it has potential to grow further.

Dan Elisa and Fred have worked together as Yellow Gardeners.

Background:
Dan, Elisa and Fred have worked together as Yellow Gardeners for the last five years. They chose to trade as a partnership under the name Yellow Fingers and Co. The business has flourished, and they think it has potential to grow further. They are particularly keen to establish a nursery specialising in alpine plants. For tax reasons and to make it easier to borrow from the bank their accountants have recommended that they incorporate and trade as a limited company. They accept their solicitor’s advice and decide to register a tailor-made company rather than buy an off the shelf company. They wish to incorporate the business using the name Yellow Fingers Ltd.

They have just been given the opportunity to take a ten-year lease of a plant nursery provided they sign the lease within the next week. Their solicitor has advised them that it will not be possible to incorporate the business in less than 20 days.

Task (Question!):

They seek your advice on the choice of their company, and its name and how they should deal with the lease of the nursery. They are concerned that they should have no personal liability on this contract.

How do I choose the right company?
6 Useful Tips for Choosing Between 2 Job Offers.

Firstly, Consider how each job aligns with your long-term career goals.

Secondly, Weigh salary with personal satisfaction.

Thirdly, Assess the culture of each workplace.

Fourthly, Compare your two prospective managers.

Fifthly, Write down a typical day in each role.

Lastly, Trust your intuition.

Word Count: – Between 2000 and 2500 words.

Equity of a company and market economy’s behavior

Equity of a company and market economy’s behavior

You now know how to evaluate the equity of a company and analyze the market economy’s behavior. Using this knowledge, you will predict your company’s future behavior through forecasting, identify and describe business opportunities that the company should pursue, and explain the benefits and costs of these decisions.

Equity of a company and analyze the market economy’s behavior

You now know how to evaluate the equity of a company and analyze the market economy’s behavior. Using this knowledge, you will predict your company’s future behavior through forecasting, identify and describe business opportunities that the company should pursue, and explain the benefits and costs of these decisions.

Prompt:

In this milestone, you have two tasks.

Firstly, predict your company’s future behavior through forecasting, projecting its likely performance based on the most recent year of financial information.

Secondly, explain the incremental impact of a hypothetical but reasonable and simple new investment project, such as a new product or facility or a cost-cutting investment, as an initial step in thinking about the future.

Thirdly, to justify your findings and projections, you need to include accurate and relevant data tables that explain how the numbers were informed by existing information and model different scenarios.

Also, Be sure to address the following critical elements:

 Projections:

Firstly, Using what you know about the company’s financial health and performance, forecast its future performance. In particular, you should:

A. Project the company’s likely consolidated financial performance for each of the next three years. Support disaggregation’s to help inform decisions.

B. Modify your projections for the coming year to show a best- and worst-case scenario based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and including relevant calculations and disaggregation beyond those in the existing financial reports.

C. Further, Discuss how your assumptions, forecasting methodology, and information gaps affect your projections.

Additionally, Why are your projections appropriate?

For example, are they consistent with the company’s mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections?

Russia’s general growth and development experience

Russia’s general growth and development experience

This is a paper that investigates Russia’s general growth and development experience. It also discusses the economic and political growth in addition to other factors.

Russia’s general growth and development experience

Russian development experience
F‌‌‍‌‌‍‍‍‌‍‍‌‍‍‍‌‌‌‍or this paper, you will choose a developing country and describe its general growth and development experience (based on the literature and data). You may want to discuss its economic growth and/or relevant political, social, demographic, environmental, and institutional factors. While you may discuss certain historical factors that are relevant to the country’s growth and development experience, please remember that this is NOT a history paper. In other words, your focus should be on the components of growth and development that are relevant and important to your chosen country.

Good papers will include some sort of thesis sentence and argument. For example,:a thesis sentence for this first paper might be,

“Although Argentina used to be one of the richest countries in the world, its development experience ov‌‌‍‌‌‍‍‍‌‍‍‌‍‍‍‌‌‌‍er the past century has been largely negative”.

Or, “The United Arab Emirates has recently been experiencing growth without development.”

Like all good papers, I expect you to cite some relevant, credible literature. The full source citations should appear at the end of the paper. In addition, whenever you write any sentence in the paper that has information taken from one of your sources, you must include a citation at the end of the sentence. For example: (Peters, 2011). Your paper should be about 3 pages. Use a standard font (such as Times New Roman 12pt font). I will deduct points from your grade for any paper over 4 pages. Clear and concise writing is an extremely difficult skill to master, but it is a valuable one. The more practice you gain with it, the easier it becomes. 4 page is mla ‌‌‍‌‌‍‍‍‌‍‍‌‍‍‍‌‌‌‍works cited

Business strategy and forecasting used in companies

Business strategy and forecasting used in companies

This is a paper discussion on Business strategy and forecasting used in companies. The paper is analyzing the steps involved in forecasting from a business perspective.

Business strategy and forecasting used in companies

Please answer each of the 5 questions in 1 page each, accurately and comprehensively. Remember that the paper is analyzing your critical thinking as well.

Firstly, Why is a good strategy so important, especially at high-tech companies? Why is crafting a good strategy so difficult?  Discuss some examples of strategies that have been implemented before by various companies. Were they successful or not? What are some of the pitfalls that a CEO needs to watch out for when crafting and implementing a strategy?

Secondly, choose an industry with a clear leader, then examine the differences between the leader and one or two of the other competitors in the industry. What are the roles of the leader in the organization? How do the strategies differ? What have the leaders done differently?

Thirdly, conduct a research and identify an example of a company that is launching a new product or service. Identify whether the company seems to be emphasizing ways that it has lowered costs (and will compete on the basis of price) or ways that it is adding features (and will compete on the basis of uniqueness). Or, does the company seem to be trying to do both? Are there companies that have used both methods?

Thirdly, explain the forecasting technique or method. Then, describe the steps involved in forecasting.  Give three examples showing why a business needs to forecast. Ensure you provide forecasting in detail while explaining the steps.
Describe the steps involved in forecasting used by current organizations.  Give three examples from your life in which you made a forecast of the future.  Were your correct in your predictions?

 

CRITICAL REVIEW ON A PRINTED ADVERTISEMENT

CRITICAL REVIEW ON A PRINTED ADVERTISEMENT

This paper focuses on: TO DO A CRITICAL REVIEW ON A PRINTED ADVERTISEMENT. Find a latest “printed advertisement” of a brand (or product) in any public sources, such as newspapers, magazines, online media, and website of the brand.

TO DO A CRITICAL REVIEW ON A PRINTED ADVERTISEMENT

REQUIREMENTS
1. Find a latest “printed advertisement” of a brand (or product) in any public sources, such as newspapers, magazines, online media, and website of the brand.

2. Write a “critical review” on the “printed advertisement” you choose.

3. Make a softcopy on the “printed advertisement” and put it into your paper. You can also use a series of such of the same product/brand in your review.

CONTENTS
There are NO dedicated requirements for the contents of your review; but here below are some of the areas that you may consider to evaluate (or criticize) on the printed advertisement:

Firstly, Brand image and brand positioning.

Secondly, Targeted customer segments.

Thirdly, Message(s) to deliver.

Fourthly, Effects of celebrity.

Furthermore,Channels of delivering this advertisement.

Moreover, Time of launching this advertisement.

Lastly, Details of the advertisement (contexts, styles, scenery, settings, colours, etc.)

 Suggestion for improvements

FORMAT & SUBMISSION REQUIREMENTS
1. Deliverables should include a written report of minimum 1,000 words and a PPT summarizing your report.

Also, There is no limitation on the length or format of the PPT, but students having done the best several PPTs will be invited to present and given bonus points.
2. Include tables, figures, diagrams or photos to illustrate your ideas and discussion.
A paper containing only texts will secure a low grade only! (Refers to Grading Rubrics)
3. Include proper (meaningful) headings or sub-headings.
4. Include references: use APA reference style

(https://www.mendeley.com/guides/apa-citation-guide).

5. Cover page should include title of your paper, student name and student.