introduction to asset classes we’ll try to be brief

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Introduction to Asset Classes We’ll try to be brief

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Introduction to Asset ClassesWe’ll try to be brief

State of the MarketsHow have you been lately?

Equities

• What do you own?

• How do you make money?

• Preferred vs. Common Stock

• Equity Fundamentals

Cause errbody kinda knows

Equity

Preferred Equity

Mezzanine

Unsecured Bonds

Secured Bonds

Bank Debt

Credit

• Financing

• Capital Structure

• Corporate Debt

• CDS

Money upfront

Other Fixed Income, Rates

• Treasuries– The Yield Curve

• Swaps

• Eurodollar/Federal Funds– What is the Fed?– LIBOR?

Governments & You

Currencies

• Factors– Interest Rate– Liquidity– Purchasing power parity– Risk perception

• Quotes/Trading?

Cash Rules Everything Around Me

Options

• Right to buy (or sell) something at a certain point in time

• But you don’t have to if you don’t want to

• Drivers?– Underlying/Spot– Strike– Dividends– Interest Rates– Time– Volatility

The real sexy stuff

Commodities

• Traditional Commodities– Oil, Natural Gas, Sugar, Corn,

Gold

• Fun stuff– Lean hogs, live cattle, orange

juice, pork bellies…basically anything you can touch

• Drivers?• “No one really knows why

gold moves”-Ben Bernanke

Stuff you can touch

Futures

• Drivers?– Cost of Carry– Seasonality– Market Projections

An Option without the option