Saturday, 22 November 2014

The Various Benefits To Making An Investment In Natural Rubber

With the price of natural rubber increasing all the time, now has never been a better time to invest. Carry on reading to learn more. 

 Natural rubber is an alternative commodity that, if invested in wisely, can offer a strong resource for long term income. Certainly, these days we use natural rubber in so many areas of our lives that many of us often overlook its value. You would probably be shocked at just how commonly used it is!

 Natural rubber, that you may possibly also know as India rubber, is produced in South East Asia, in nations like Thailand and Indonesia. The weather in these international locations is perfect for the growth of natural rubber. And quite a few industry professionals are forecasting that natural rubber is to these nations what gold once was to other countries.

 The reasons to spend money on natural rubber as a commodity are extensive. If a person lets you know there is no cash whatsoever to be made from the natural rubber market place, they're just 100% wrong. Even so, a quick look at the facts and figures concerning the importation and exportation of natural rubber will show you there has been a massive amount of growth in the last few years. This extraordinary growth is the reason plenty of people are starting look for investment advice.

 Coming from a business viewpoint, you really don't need to spend excessively on creating your own private plantation of Indial rubber; nevertheless if you really want the very best you will want to spend big money or capital for everything to function properly.

 Fact is, natural rubber will always be wide-spread in modern society. Have a look around you and add up the number of products in the home and appliances which need the use of rubber. Motor vehicles have to have rubber and so does plenty of devices as well as many pieces of equipment. When you have got a sense of exactly how many things make use of rubber, next make an attempt to get your head around how much should be produced globally to generate these products.

 As a result of this huge demand for rubber, there is lots of cash to be made in meeting this requirement. There've been reports that propose that contrary to other organic sources like gas and fossil fuel, natural rubber won't ever be depleted providing the sources are looked after the right way. Indeed, if the opportunist ensures that everything is farmed self-sufficiently they are more or less assured an infinite supply of rubber, which, not surprisingly, means an awesome long-lasting pay off.

 In addition, making an investment in India rubber a very good idea for folks who love to know they're doing something which is moral. By that I mean you will be helping out the local communities in South East Asia. The local manpower does more than merely collect the latex which will end up being the foundation of the rubber. There's lots of other work opportunities which you can offer the local community, like security guard work opportunities, as an illustration. You happen to be empowering the local neighborhood by supplying them something through which they're able to nourish themselves as well as their families. Delivering this tiny amount of joy for your workforce is a thing which has been not addressed by many businesses in the past and is a little something which you will want take into account when investing in natural rubber.

Trading Agency Cmo Inverse Floating Bonds

 I am a portfolio manager with equity trading experience and not fixed income derivatives, how can I include inverse floating bonds without destroying my P & L?

 Poor P & L is as a result of a badly negotiated coupon formula and the lack of an understanding on how to analyze the collateral and the structure.

 My goal is to give you a worthwhile explanation of how to value and trade inverse floating bonds in other to avoid heavy loses.

 These are some of the variables you should look at when decidind to bid/ask for an inverse floater:

 Collateral: WAC, WALA, CPN, SPEED

 Coupon Structure:
 Bond Type, Lever, CPN, DM, CAP Strike Rate, Rate Reset, Underlying Index, Floor Strike Rate, YLD FWD, and the effective duration.


 A portfolio of inverse floating bonds should be hedge with option contract.
 In buying option contract you should ask yourself these following questions:

  •  1.Which option contract should be used for the hedge?
  •  2.Which month?
  •  3.Which strike price?
  •  4.How many contracts should be used?

 The first CMO was created by Credit First Boston in 1983. Some of todays traders were still in elementary school, when the first CMO was structured, so they were not trading CMO during the President Carters double digit inflationary rate or President Regans double digit interest rates. Thus, wont know how inverse floating bonds will react in a double digit inflation or interest rate environment.

 Not all inverses are equal. Most are volatile, while some are not. Also consider that you could be looking at PAC Inverse, SEQ inverse, PT inverse, SUP Inverse, Remic Inverse etc.

 In a structure of two tranches in comparison to an inverse with five structures, I do not recommend you use recombination in valuing the inverse. In addition, the effective duration signals the change in cash flows due to a change in prepayment speeds and interest rate changes: i.e. for those bonds that are linked to the 1M Libor, COFI or T12. A trader should know how the collateral prepayment speed, inflation, interest swaptions, convexity and forward yield curve when using the YB table.

 The inverse bond reset margin is vital. What is driving the index levels, in some cases the currency market, does play a role on most indexes like the Libor. Why? Foreign investors in pursuit of a better return on their investment might buy other currency instead of the dollar; this way, they get a better interest income on their currency, hence forcing the Fed to choose to save the dollar or the housing market.

 For a trader who pays 64 cents on a dollar in the primary market, if the index hits the strike it is customary for the inverse floater to trade around 63 cents on a dollar to 65 cents on a dollar. In this case, the option is what the street is looking at and predicting the index will decrease by 25bps. Furthermore, the general idea is that a higher lever is what additional bps points when the inverse floater has hit the strike. However, if the index does not equal the value of your inverse, the outcome could be anyones call.

 As someone who has seen the inverse floating universe and the mistakes traders make, it is no surprise that most proprietary trading desk managing directors are having a sleepless night while the hedge fund star traders sleeps like a baby.

 Now, with all this talk about option this and option that, dont underestimate the power of the collateral prepayment speed. If a good number of people walk away from their mortgage payment, you can forget the high lever, for you wont have enough cash to meet employee retirements or any other obligations for that matter.

 In modeling deals you probably subscribe to INTEX meaning that you have to wait around for INTEX to send you the cash flow. Now, If INTEX has not modeled the deal and you cannot wait, the programmers on your trading desk should know what to do. I recommend you sit down with your C++ developers and I tell them the variables that you need in other to arrive at the bid/ask price for the inverse floater.

 In order to trade profitably, an inverse floater bond trader must understand what is vital and whats not vital about the inverse floating bond asset class, such as, margin reset, forward curve, swap, the PSA/CPR at which the mortgage borrower is paying back the loan and the OAS level etc. For example, I pointed a proprietary trader in the right direction see below.

 This trader was going to sell 1,000,000 shares of bonds at $75.00 each, and I told him to sell it for $88.50/32 base on my algorithmic calculations. In the end, the trader was paid $88.50/32 for the bond. The major factor here was the CPR speed i.e. the rate at which people are paying back the loans they borrowed to buy their first house in a case of default the investor will be in trouble. The lesson learned here is the need for a trader to have a solid evaluation skill sets like mines for my experience and quant abilities allowed me to value the bond and arrive at a bid/ask price.

 The question is: Does your trader know when to buy and when to sell? Some inverse floating bonds are linked to the real estate business cycles. As someone who has seen thousands of inverses and valued them given the interest rate environment, your fortune will take off. The fundamental issue is the structure and cash flow.

 The major loss that the fixed income derivative asset class has seen in the past years has to do with traders who did understand that the LIBOR index that the inverse is linked to and the prepayment speed. These traders buy into strength and then turn around to sell weakness. Most of the time, the trader does not have an exit strategy.

 As the hedge fund industry becomes a full grown adult, and investment banks are jumping into the game, which means the lack of the required specialist skill sets to look at various Agency CMO asset classes. However, the good news here is the volume of illiquid property that will turn into cash is very huge, hence, creating the opportunity for great wealth creation. While Wall Street is the capital market center of the world and a most innovative one at that, I expect China, Japan, and India to follow suit in the creation of collateral mortgage obligations, hence calling for the demand for a hands-on, seasoned agency CMO specialist. As someone who has seen the whole universe of Agency CMO inverse floaters, I know of and have seen inverse floaters and the struggles hedge fund managers and commercial banks trading desk have in arriving at a bid/ask price due lack of trading experience.

 In conclusion, the paramount issue here is been able to submit a bid/ask in the primary or secondary market of inverse floaters. In addition, making sure to have an entry and exit strategy. Your goal as a proprietary managing director is to make sure that your traders submits the right bid/ask price when selling inverse floaters. 

Why PAN card is mandatory for NRI people

PAN (Permanent Account Number) is a card issued by Income Tax department with the support of Central Board for Direct Taxes. PAN is must for all high value transaction and it is consists of unique 10 digit cipher code with the combination of alphabets and numerals. PAN includes with important factors such as name, age, date of birth, fathers name, signature and Photo of the candidate. NRI (Non Resident Indians), for NRI people it is necessary to have nri pan card as per the Indian Act for Tax Exemption Certificate under section 197.

 PAN is the personal id proof of every individual and it is also act as a NIN (National Identification Number). PAN plays a vital role in various parts like property deals, bank accounts opening, Claiming refunds on TDS (Tax Deducted Source) and also to get a telephone connection in India. It made easy for the I-T department to track all high value transactions, additional it holds with all relevant details of the financial transaction which includes property selling, buying, and Bank account opening and so on.

 Why PAN card is mandatory for NRI people? Most NRIs don't have a PAN but it's advisable to get PAN because it is the most required ID proof for all the NRI people when they look for Home loan, financial loan or investments plans such as nri online trading to preserve tax. As per SEBI recent rules, one must require a PAN card to trade in shares, commodities or anything appropriate to the depositary. Are you a NRI and intend to invest in share market other similar financial sectors? Then you must have a PAN card for nri with you. If you are an OCI or PIO appropriate pan cards such as OCI pan card or pio pan card will be required. PAN number is not required for one while opening a new account in any banks (Applicable throughout the India). But it is compulsory to have PAN while transferring huge amount to someone.

 PAN not alone helps you in getting home loans, person loans, but also helps you when you trying to get any fixed assert. Here the documents act as the proof of transferring the properties which includes PAN number of the seller and buyer. In the absence of original documents, the seller must approach a lawyer who would help him to get the certificate to prove that he/she is the rightful owner of the property.

 India is a country of entrepreneurs, who believe in working hard even in difficult business environment. Therefore get your PAN for an easy Indian investment experience. 

Using Scrap Metal as a Serious Investment

Gold has always been a great investment. But the recent run up in prices has created an even more lucrative opportunity for the savvy investor. At Houston Gold Merchants, we've begun to sell another form of investment gold. 

 While most investors use gold to hedge against the devaluation of the dollar and maintain their wealth, only a very few visionaries will seize upon this opportunity to CREATE wealth as well as maintain it. 

 For decades the acquisition of gold in the form of bullion has been a hedge against inflation. Usually the bullion has come in two forms. The most popular is coins. Minted by governments, private companies and as commemorative items, coins come in varying degrees of purity from 18K to pure 24K. 

 The second most popular investment bullion is bar form. Less expensive because demand is lower, bars were, for decades the only way to invest in large amounts of gold. Minted in many sizes and by various companies and institutions, bars will always have a place in the portfolio of many HNWI. (high net worth individuals) 

 But today's frantic marketplace for gold has created a new and exciting opportunity for investors who have the courage to try something new and the financial power to execute this exciting investment play. 

 The purchase (for investment purposes) of scrap gold jewelry is a huge and growing market, particularly in wealthier segments of the population. While the less affluent may have already sold their limited amounts of small jewelry, the affluent are less likely to have tapped into their reserves. That means there's still going to be a lot of gold in the market and it's going to be purer and of better quality because it's coming from the homes and safety deposit boxes of the wealthy. While most bullion purchases are made at the -spot- price of gold plus an additional fee or premium, scrap gold is purchased for significantly below the -spot- price. So instead of acquiring gold for costs that EXCEED its current value and hoping that it appreciates (speculating), with scrap gold, you buy below market cost and realize an instant profit even if the market price declines. 

 Without exception, this is the best play in the gold market today. There is huge market of untapped gold, a large profit margin and the security that is associated with that large margin. There's a reason you're seeing gold stores pop up all over the place. Scrap metal is the way to go. 

What are the Investment Options in Noida Real estate

Noida has come up as one of the hottest real estate options in North India. Here the properties are sold at an effective price suitable for middle earner as well as for those who are luxury lovers. This eastern end of NCR is achieving northern status day by day. Not only the experienced ones, but young Investors are showing keen Interest in new projects in Noida. Due to more affordable prices and better amenities, Noida is turning up to be the hottest residential hotspot of India. Buyers and investors often get confused to find properties for Investment purpose as not all deals are good for buying and only some are good for Investments. Here are some of the most interesting and best investment options in Noida which are ideal for buying purposes as well :- > 

Imperial County - This project is coming up in Greater Noida, near Yamuna expressway. Offering residential plots of cut lengths, the affordability factor is quite optimum as these are available in the range of Rs.51 Lacs - Rs.68 Lacs. 

3C Lotus City - It is coming up in Greater Noida offering residential plots as well as flats in a budget range of Rs. 29 lacs to 1.23 Cr. Made by well known 3C builders, this is the best deal available for Investment to those who goes quite awry with longer paying dividends and believe in short term paying factors. 

Unitech Unihomes - Coming up in Sector 117 Noida, offering 1/2/3 BHK residential flats at one of the prime locations of NCR, Unitech Unihomes are another piece of innovative architecture available at a price just Rs. 29 lacs. 

Orris Green Bay Golf Village - This project is also coming up in Greater Noida, offering farmlands in Noida, at most economical prices, starting at just Rs. 30 lacs. Sizes available 150 sq. yds, 250 sq. yds., 350 sq. yds., 550 sq. yds., 750 sq. yds.. This is a complete 9 hole golf village where all amenities and facilities will be conditional. 

Do you know why these projects are listed best Investment Option. Because:- 
  • They are being developed as one of the most prime locations of Noida
  • They are the best value for money when it comes to the quality of Investment 
  • High appreciation in cost due to further development of Infrastructure of neighboring areas 
  • Fit for short as well as long term Investments 
  • Attached brand names with each of the project, each builder is well known. 
  • Resale price at possession date will be double of what you are paying now (expected) 

Why Property Investment in Delhi is a Good Option

Will property prices in India fall? This is one question every one has been asking, as its answer will eventually decide whether you will be investing in the property in India now or you will rather wait for the property prices to fall. 

 According to the Investment Gurus and real estate experts -there is a definite boom in the property market in India and that's why many people are going for investment in the property in India. According to market experts, Indian property market has got a tremendous potential and it will surely ride high in the coming years.- 

 Favorable property market and real estate boom has made property investment in India look safe. This is also proved by the fact that Indian Government has liberalized its foreign direct policy to attract higher foreign investment. A recent survey has revealed that, India stands on the fourth position among the top four Asian destinations for foreign direct investment. 

 After reading all this, you must be thinking about where in India do you actually invest to have maximum returns. Though all the major Indian cities have seen an appreciation in the property prices, but New Delhi, the capital of India has experienced the maximum rise in property prices. Property prices in and around New Delhi have increased by up to 5 times within a few years. It's not that the property prices in New Delhi have suddenly seen a rise. Prices of property whether it be residential, commercial or industrial have been rising in New Delhi over the last few years. 

 And the reason behind this steady rise in property prices is the fact that being the capital of world's largest democracy, Delhi has always attracted people from all walks of life. And with Delhi being the host of Commonwealth Games to be held in 2010, considerable investments are being made by the public sector to improve the overall infrastructure. 

 The government's positive attitude, transparent property laws and the great demand for housing and commercial establishments are attracting more people for making property investment than any other city in the region. The returns on the investment on the capital value of the property are among the highest in the world, approximately 10 to 15%! And with the industry expanding at 30% annually, who would want to miss the opportunity? 

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