Atlas Investment Management

Case Background The case is about an coronation stop point to be made by map collection investing 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 transactions were conducted was that verdure hills trustees would pop the question AIM with or so mean(a) term goals, Atlas wherefore got back to Green Hills with some recommendations out of which Green hills chose star. Green hills typically held bonds purchased for more than one year. Trustees of green hills laid reach on preserving their principal amount. only as pursuit grade in the economy fell, they took a more aggressive stance. They discrete to ask for higher returns although their essential for safety was still there. tin Galt and his associates came up with iv shortlists. The first, as suggested by Bob was a pickax between two bonds a 7.875% bond of GE Capital, a subsidiar y of ordinary Electric or a 7.6% bond of Motorola. Both bonds were investing 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 regularized 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 logical thinking he put behind this is that Green Hills trustees have elect 8 Treasury bonds out of the make it 10 bonds recommended. The fair game of the case is to make an investment decision based on various criteria s uch as negligence risk, interest rate risk,! Yield to Maturity, Credit risk and other(a) paramaters. Background knowledge imply 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 delimitate 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 motivation to get a all-embracing essay, order it on our website: OrderCustomPaper.com

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