Give us a break RAT. You attack anyone that does not agree with you or challenges one of your moronic posts__my labeling them in a group thought category and then goes out of your way to hurl insults.
The larger question is what they will (intend) to do with the reacquired shares. When they reacquire shares it becomes added to the ‘Treasury Stock’ account. Whatever the plan or lack of one__it provides a number of options. Obviously if the accumulated cash had been distributed directly to shareholders__options are removed. Examples of Treasury stock use would be for distribution to employees through stock option plans. Share availability for an acquisition of another company. Protection against an entity acquiring voting leverage.
However, the most probable is resale later or retirement of the shares. The former could be viewed as a form of hedging.
A simple example of this is a barbell or a ladder. I will use the barbell. If you believe rates are headed higher and your port had been over weighted in MBS and callables you shift assets to shorter durations and adjustable securities etc.
No professional income manager (except recently Bill Gross) makes big bets on feelings about general interest rates they manage portfolios on yield to maturity, yield to worst, their portfolios duration and convexity curves against either the actual yield curve or their benchmark index. The fact that these are relatively complex concepts is why fixed income managers aggregately are compensated at a higher level than equity managers. It is also why most retail investors have/need to rely on these pros to manage our investment risks. Theoretically AGNC investors are paying management to mitigate some of these risks (like convexity). I would bet heavier on AGNC managers other than ARR or CIM__evenr though I have considerable paper gain in CIM.
Note: I have an omnibus accounts and a legal sales relationship with Fidelity. I have mentioned before FRIFX and FFHRX and recently JRO.
"And an investment with low convexity is lower risk than an investment with higher convexity"
For a specific debt instrument security within a debt sector compared to another debt instrument within same sector convexity is a minor risk factor influenced by the individual securities duration.
When you start comparing interest rate change risk for debt instruments in different sectors it can be a major influence in the construction of an allocated fixed income portfolio.
Again convexity is the rate of change in a bonds duration_it is the sensitivity to general or indexed basis point changes. The Dr. has been correct that MBS exhibit negative convexity. But he used the term convexity in relation to MBS options (I have never figured out how that could apply) to now non-convexity instruments. I just do not believe he understands the practical relationship.
If you accept the concept that the primary reason for constructing/managing a fixed income allocation is income then you design for yield management as individual securities mature (turnover). If in constructing/managing this fixed income allocation you believe general or the index that a security is tied to; e.g. Libor are going to rise you would want to reduce the portfolio(s) duration. How do you affectively accomplish this across the portfolio__you would shift asset(s) from instruments that exhibit a negative convexity; e.g. MBS and callable instruments to ones that exhibit positive convexity. When I say shift I do not mean all or none__you attempt to make the yield curve changes your ally. If you are truly managing for total portfolio income then you then you make adjustments across your projected forward portfolio income__basically you make reinvestments for yield not gains.
Those numbers I posted were taken from the report that was issued that day. There is a difference between aggregate total employment and participation numbers and the flow (liken to cash flow) of jobs + or - over a 12 month lookback.
Attacking myself and others with names will not provide cover for the fact that you do read any research information and relies on non-verified/sourced internet portals.
It is incredulous that someone who has detroyed any measure of creditability would think anyone would first believe him and second why would anyone care. Is he so moronic to think somehow what he does on these boards amounts to a personal relationship?
He starts out talking about aggregate supply and demand (obviosly does not realize what that means) now his trying to relate that to inventory markdowns?
Formula for a markdown selling price= cost/1- percent markup on previous selling price
What an uneducated fool_guess that is what happens when the basis of information comes down to non-professionally developed pedia portals!
Did you guys see those new Harvard polls about the current disillusionment of Millennial(s) for the annoited one. The McLaughin Group show spent time talking about them last night.
Do not blame me__those numbers are directly from the report the govt agency released that day. I know it is hard for to comprehend the concept of actually reading a report. You seem to always rely on numbers you have dreamed up after smoking ur crack pipe.
I have offered to meet him and put an end to his rodentia spiral__Katy says me first-because he raped her child??
Come on out RAT and give me actual name and birth date (and whether you are a male/or fem) you see the interfaced databse between states 'Sounder' system is getting ever closer to identifying rodentia taht needs elimination!
Only a RAT would post how to correct a derogatory term. I am still waiting for your response to my specific offer to meet and end your pain__I know that dealing with retribution is a painful process _I can help you achieve the only societal correct end for a ‘rodentia’
The rodentia offspring has become caught in my trap: After months of wanting to be a Marxist_even though he possess limited conceptual knowledge about Marx__in a vain attempt to support his conjectures has resulted to referencing (for him internet portal searches) a noted and often referenced political economist from the mid to late 18th century. No mind that Adam Smith(s) analysis was in direct contrast than his beloved Karl Marx. Historical perspective provides an answer__economics is the resultant accumulation of knowledge derived from studying three behavioral sciences: politics, sociology and psychology/physiology. Adam penned during the economic upheaval of agricultural based societies. It is directly the influence of organized market exchanges that Adam Smith penned about. Karl penned during upheaval of industrial revolution.
Adam Smith often referred to as ‘acting as a ‘Scottsman’__an obvious stab at geographical ethnicity!
From “Types Of Economic Theory-From Mercantilism To Institutionalism”, Wesley C. Mitchell, Copyright 1967 (before the days of ISBNs).
“Smith is most correlated with the concept of ‘laissex faire’_the belief that the wealth of a nation would increase most rapidly if every person was allowed the fullest opportunity to decide for his own individual self is the method to use his labor and whatever the capital he possessed.”
“Critical discerning of his publications reveals he believed the best policy for a wealth of a nation was for government to interfere as little as possible with the occupations and capital decisions of citizens”
Surprising that the RAT would start referencing the retribution of his ‘Karl’. It just further elicits his lack of any relevant education.
I named his Milton's nickname for his daughter 'Janey' Personal attacks are not going to save you from your brain spanking (starting to be obvious it is hurting your limited amount of cells). If you want sourced info on my background__meet in person__I will end the pain your rodentia existence deliver unto soceity!
If they did they should have had to pass an SAT exam to qualify for admittance. But lets face it the RAT is at best a GED. His multitude of posts have revealedeEvidentionary he has failed at all four of the 'Learning Domains' I outlined.
Besides many of us recall his multiple postings saying he never attended. The past is truly an edged sword!
Yes: From “Types Of Economic Theory-From Mercantilism To Institutionalism”, Wesley C. Mitchell, Copyright 1967 (before the days of ISBNs).
Adam Smith penned: “The prices at which goods exchange, can be analyzed into their component parts: rent, wages, and profits. Thus production as a central feature is determined by analysis leading to consideration of those component parts”
Hey RAT no mention of supply and demand.
Stop trying to compete in an adult world for discourse!
Tisk_tisk_tisk RAT. Posting emotional tantrums will not save you from feeling inadequate about your brain spanking. It is just not possible for a GED rodentia offspring to compete in the world of academic knowledge. Your feeble attempt at refutation for eleven sourced references eliciting managers determine pricing on costing analysis is what a citation from a political economy author published in 1776__when the European economies were in an 'agricultural revolution'__when the concept of a competitive firm had never even been conceived.
Take at least four years off from whacking off on these boards__put down the crack pipe_open real books__study (are u capable) and come back and try to not get brain spanked.
Dude you need to go down in the list and read my posting lesson about convexity. You only ever refer to negative convexity and non-convexity. Essentially there is no such debt instrument that exhibits non-convexity. They either exhibit positive or negative convexity. Floating rates have positive (not non). Treasury Notes and Bonds also exhibit positive (not non) convexity because they have a fixed coupon and maturities. TIPs well it just depends since the adjustment CPI is not established by market forces (as floating rates are__usually LIBOR) but a government collected data adjustment.
Duration is calculated using the calculus ‘Macaulay formula’. If we were to use duration to estimate the price resulting from a significant change in yield, the estimation would be inaccurate__due to rate of change variance comparing one instruments duration to another. Convexity requires a further calculus formula to account for inaccuracies of the linear duration line. The calculation that plots the curved line uses a Taylor series, a rather complicated calculus theory.
Instead of continually posting your mis-representations about convexity__post some derived calculations referenced to a specific CUSIP and show us an instrument with non-convexity.
From the “A Guide For The Professional Instructional Developer, Darryl L. Sink and & Associates, Inc.
“There are four academically recognized domains of learning: cognitive, affective, psychomotor, and interpersonal.”
I contend that RATs GED materials were designed to meet minimal testing requirements to enable attainment of a certificate (fake graduation) with little usable knowledge or skill development.
Contrast that with professionally developed curriculum and course material development. Material development process involves:
A needs analysis
Subject matter expert (SME) analysis
Developing learning objectives
Constructing criterion content outlines (supporting the above)
Development criterion reference testing procedures
All of this before even any student material is penned. It becomes awfully clear now why the RAT is a failure.
Yes RAT just as I said supply and demand only determines price in an auction type of market enviornment for inputs of materials and commodities. Are you so stupid to not know that commodites trade trade in an auction market on worldwide exchanges. Thanks for helping prove my thesis. You have been brain spanked again.