synthetic asset

Synthetic Asset

A position in which one takes various positions to create the same effect as holding a certain asset or other investment vehicle. For example, one may borrow funds in one currency and lend the same amount in another currency in order to create the same effect as having a forward contract on one of the currencies.

synthetic asset

The combination of securities and/or assets in such a way that they produce the same financial effect as the ownership of an entirely different asset would. For example, selling a put option and buying a call option on a commodity produce the same financial effect as actually owning the underlying commodity.
References in periodicals archive ?
In his new role, Li will help manage nearly USD34bn in John Hancock wealth management portfolios, as well as developing and managing synthetic asset exposures inside certain asset allocation portfolios.
Li helps manage approximately $34 billion in John Hancock wealth management portfolios, as well as developing and managing synthetic asset exposures inside certain asset allocation portfolios.
Designing a synthetic asset portfolio is based on the concepts of transfer pricing, as used in the banking industry but a complete discussion is beyond the scope of this article.
BNY Mellon Beta Management, a BNY Mellon Asset Management business that facilitates rebalancing programs and synthetic asset class exposure through the use of futures, swaps, index funds, and exchange-traded funds (ETFs), outlines the risks and potential costs of such a delay in its report, Interim Portfolio Management.
Part of the MTM group, BNY Mellon Beta Management, facilitates rebalancing programs and synthetic asset class exposure through the use of futures, swaps, index funds, and exchange-traded funds (ETFs), and can serve as a low-cost passive manager similar to an indexer over intermediate horizons.
25, 2011 /PRNewswire/ -- Large capitalization stocks are poised to outperform small capitalization stocks over the medium to long term, according to a recent analysis by BNY Mellon Beta Management, a BNY Mellon Asset Management business that facilitates rebalancing programs and synthetic asset class exposure through the use of futures, swaps, index funds, and exchange-traded funds (ETFs).
SAN FRANCISCO, July 28 /PRNewswire-FirstCall/ -- The relatively high transaction costs associated with small cap stocks combined with forecasted returns that are not expected to exceed those of large cap stocks make the asset class relatively unattractive at this time, according to a recent study by BNY Mellon Beta Management, a BNY Mellon Asset Management business that facilitates rebalancing programs and synthetic asset class exposure through the use of futures, swaps, index funds, and exchange-traded funds (ETFs).
NEW YORK -- CDS IndexCo LLC ("CDS IndexCo"), a consortium of 16 investment banks licensed as market makers in the ABX, CDX and CMBX indices, and Markit Group Limited ("Markit"), the leading provider of independent data, portfolio valuations and OTC derivatives trade processing, announced today the launch of TABX, standardized tranches of the ABX indices, the synthetic asset backed benchmark indices referencing U.
Principal payments to the cash note holders depend not only on the overall amortization of the collateral as in typical cash ABS CDOs, but also on the relative amortization of the cash versus synthetic asset pool.
In a new report, Fitch Ratings points out that investors should attain a better understanding of the unique issues and potential underlying risks involved with this burgeoning synthetic asset class.
Barclays chose riskier synthetic assets so as to win its best against them, and chose safer cash assets to ensure that its bet would actually pay off," Space Coast wrote in its complaint, adding that the evidence "lay to rest any notions of chance and instead evince deliberate-indeed, malevolent-design.
The second, and perhaps even graver problem, is that the legacy companies' culture is biased towards preserving their synthetic assets.

Full browser ?