Atlas Investment Management

Case Background The case is about an coronation taenia point to be made by atlas coronation Management for their clients light-green hills. The case is dated at January, 2002. Atlas Investment managed a $600 million fixed-income portfolio for colour Hills. The way these legal proceeding were conducted was that verdure hills trustees would pop the question AIM with few mode vagabond term goals, Atlas wherefore got back to Green Hills with some recommendations out of which Green hills chose unrivaled. Green hills typically held bonds purchased for more than one year. Trustees of green hills laid reach on preserving their principal amount. further as rice beer grade in the economy fell, they took a more aggressive stance. They discrete to ask for higher returns although their involve for safety was still there. tin Galt and his associates came up with quartette shortlists. The first, as suggested by Bob was a picking between devil bonds a 7.875% bond of GE Capital, a subsidiary of ecumenical Electric or a 7.6% bond of Motorola. Both bonds were enthronement grade and were to mature fivesome years later. The third choice suggested by Roger was an 11.25% bond of take up Atlantic City. It was four and half years away from matureness and was rated CC by Standard and Poors. The fourth choice as suggested by Brian was a 3.625 % Treasury note that was to mature in 6 years.

The cerebrate he put behind this is that Green Hills trustees have chosen 8 Treasury bonds out of the make it 10 bonds recommended. The clinical of the case is to make an investment decision based on various criteria such as negligence ris! k, interest rate risk, Yield to Maturity, Credit risk and other(a) paramaters. Background knowledge use up The following concepts are required: Bond: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a delimit period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a...If you want to get a all-embracing essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay