Wednesday, September 2, 2020
6 To-Do List Styles to Get Your Life all together Do you consider making a plan for the day unusually overwhelming? On the off chance that youÃ¢â¬â¢re one of those individuals who donÃ¢â¬â¢t normally keep an eye on the plan for the day, you may require a little assistance or motivation to kick you off. Here are the absolute best formats, alternatives, and styles for you to try.The Old School ListGo the straightforward course and basically handwrite your rundown. On the off chance that you get an irregular idea and arenÃ¢â¬â¢t close to your PC, simply write it down! You can generally add it to an all the more cutting edge list later on. You may discover this technique less diverting when youÃ¢â¬â¢re in a working section. On the off chance that you make some hard memories conceptualizing how to sort out your rundown, there are huge amounts of printable layouts in .doc or PDF. Simply print Ã¢â¬Ëem out and fill Ã¢â¬Ëem in!Bullet JournalingEverybodyÃ¢â¬â¢s discussing Bullet journaling. Find out about this new method, portra yed as Ã¢â¬Å"a adjustable and excusing association systemÃ¢â¬ -an across the board Ã¢â¬Å"to-do list, sketchbook, scratch pad, and diary.Ã¢â¬ It causes you keep your rundowns reasonable in size and shield things from overpowering you while ensuring a greater amount of them really complete. So go to the site and see whether the Kool-Aid is directly for you!Breaking It DownSet yourself one major objective for the afternoon, at that point break it into noteworthy pieces. The littler assignments will feel more sensible than the bigger objective, and youÃ¢â¬â¢ll discover you work on them rapidly. When you gather speed, youÃ¢â¬â¢ll be amazed at how quick you take out your definitive objective and consider that day a success.Use Your CloudUse the cloud schedule work as of now on your PC or your telephone. TheyÃ¢â¬â¢ll consolidate easily so you can refresh from either gadget and have your plan for the day with you consistently. Furthermore, it can assist you with imagining how m uch time you have for each fragment of your day. Evaluate the Google Ã¢â¬Å"GoalsÃ¢â¬ include alongside this strategy for your drawn out list of things to get of goals.Prioritize Your TasksCheck out Wunderlist, Todosit, or iDoneThis, or the a huge number of applications like them, to sort your tasks by need level. YouÃ¢â¬â¢ll likewise procure reward Ã¢â¬Å"pointsÃ¢â¬ for each errand finished, which is sufficiently amusing to cause you to feel great about yourself. In the event that you need an adaptation with less fancy odds and ends, attempt Template.net which sorts your assignments into sections like Ã¢â¬Å"to do, to get, to call,Ã¢â¬ and so forth. Or on the other hand TidyForms, which lets you plan out two entire days rather than one.Do It For CupcakesNo, truly, thatÃ¢â¬â¢s the name of the layout. Configuration Eat Repeat made a lovable week by week sorting out layout called DO IT FOR THE CUPCAKES that lets you recognize six objectives for each day. In the event that you finish every one of your errands in that week, you get cupcakes! All things considered, youÃ¢â¬â¢re unequivocally urged to get them.
Saturday, August 22, 2020
Vital administration Assignment 1 - Essay Example Worldwide Retail Industry Global economy is decelerating because of different reasons, for example, Euro zone emergency and monetary downturn began in the year 2008 (Deloitte, 2012). Retailers, for example, Marks and Spencer, John Lewis, Target, Wal-Mart, Kohl and others are attempting to keep up deals development while other retail players, for example, Nordstrom, Saks and Neiman Marcus have recorded same store deals development of 12% a year ago. Worldwide retailers are confronting following patterns to change the elements of business activity. Arrangement Retailers are utilizing on the web channel to build showcase infiltration and offer item as per request of clients. Wal-Mart has as of late shut their Marketside (supermarket) because of poor rate of return. Wal-Mart has intended to open adaptable retail form so as to satisfy request of room compelled and low populace showcase. The activity is known as Wal-Mart Express. IKEA has propelled their nation explicit retail position rou te back in the year 2000. IKEA gives full home arrangement so as to satisfy multidimensionality of interest. Walgreen has included food area and medication fragment in their retail design with a goal to differentiate item offering. UK based departmental store chain John Lewis has executed online deals divert so as to offer items to time obliged client. Promoting Customers are getting all the more requesting because of hypercompetitive nature of the market. Retailers have moved their concentration from offering stocks to offering item connected with client attribute, for example, right quality, right cost and predominant help. Retailers are changing their contribution in agreement to neighborhood culture and taste. In the changed market elements retailers need three things. These three things are clarified in the accompanying area. Legitimate statistical surveying on taste and inclination of neighborhood clients Developing examination motor, for example, request guaging, store bunchi ng, effort following, cost mapping and essential collection arranging Technology incorporation, for example, Enterprise Resource Planning (ERP), RFID (Radio Frequency Identity) is required so as to make a viable worth chain Online Shopping Study directed by KPMG shows that computerized nearness (internet based life, versatile, web traffic) of retail organize has expanded complex lately. 40 % of retailers are relying upon long range interpersonal communication destinations for expanding on the web nearness while staying 60% despite everything accept that web dealing is the most ideal approach to improve online nearness. Worldwide report proposes that web based retailing is demonstrating a development capability of 15% while disconnected exchange channels are developing at a pace of 7% for most recent two years (Grannis, 2012). Watchman Five Force Analysis Threat of New Entrants Global retail industry is going through a critical period because of following reasons: Market is getting i mmersed in created nations because of quality of numerous contenders. Market of creating nations is getting appealing because of different plans offered by separate governments. For instance, Chinese government has opened up the economy for remote retailers by diminishing
Friday, August 21, 2020
An In Depth Look At Blizzard Entertainment This report is an inside and out glance at Blizzard Entertainment the organization, to discover why Blizzard amusement is so fruitful in the gaming business. We will take a gander at the reasons on how it could come out with top of the line games again and again and how they figure out how to sell 2.4 million duplicates of one game inside the initial 24 hours. Besides, we will see how Blizzard diversion runs such a major organization to such proficiency utilizing the plan of action SWOT and PEST in the examination of its prosperity. A glance at the present turns of events and what future improvements it may have or where it can go from here will be talked about also. I. A Brief History of Blizzard Entertainment Indeed, Blizzard Entertainment was not generally as we had known it, initially established in 1991 February as Silicon Synapse by Chairman Allen Adham, president Michael Morhaime and VP Frank Pearce All Graduates from UCLA. In the times of Silicon Synapse it was more on centered around making game ports for other Gaming studios. Until the Breakthrough Game The Lost Vikings, it was hailed as one of the ancestors of that Game Genre . A year after that they discharged Rock Roll Racing another Cult Hit that prepared for its ancestors in the Racer Shooter Genre. In 1994 It was at exactly that point its name was restored as Blizzard Entertainment. The primary large scope game it discharged by Blizzard Entertainment, was Warcraft: Orcs Humans and it was a hit with the gamers. Since the time they have made a benchmark in the game, the gaming scene was readily available at this point. After such accomplishment with Blizzard Entertainments unique Warcraft game, Warcraft: Orcs Humans , was touted as extraordinary compared to other technique rounds of 1994, and the games epic continuation, 1995s Warcraft II : Tides Of Darkness, won various honors, including the companys first Game of the Year grant. Warcraft III :Reign Of Chaoss, discharged in July 2002, has moreover won a few honors , simply like Starcraft another hit Game Series discharged by Blizzard Entertainment, It has gotten a staple of expert competition gaming, al ongside its development, the honor winning Warcraft III : The Frozen Throne, which was discharged in July 2003. II. Current Projects and a glance at the ascent of WOW ( World Of Warcraft) Well Blizzard has numerous striking accomplishments in its discharged games, None of it approaches World Of Warcraft, all the more broadly known as WOW. Universe of Warcraft remains as the best game in the well known Warcraft arrangement. Universe of Warcraft has been an uncommon accomplishment since its dispatch in November 2004. It has intrigued game pundits and has enraptured a great many players, who venerate the virtual world made by this game. It is not, at this point only a game however is currently a real wonder, and one that gives no indications of lessening. It is one of the key rounds of late occasions, and stands as a milestone title for web based gaming. Universe of Warcraft is the forward title in the arrangement of Warcraft games, which has been engaging individuals for longer than 10 years To see progressively about the intrigue of World of Warcraft, let us review when WOW was discharged. It was not only some hugely multiplayer online pretending game. It made a really captivating on the web world set in the core of Azeroth, an awesome land that is loaded up with saints and beasts and numerous different animals. The games quality is that it capacities as an encounter, as a world that exists on its own terms that you may visit and investigate however you see fit. The game sold in excess of 240,000 duplicates in its initial 24 hours available, more than some other PC game ever. From that point forward it discharged two other development sets which was a more noteworthy achievement then the one preceding. Snowstorm is likewise making endeavor to enhance past their unique point of simply making games. Snowstorm Entertainment is as of now working with Legendary Pictures in making a real life Warcraft film. III. tso The 8 Core Values are specifically : Ongoing interaction First, Snowstorm Entertainments achievement can be ascribed to the gaming encounters they give the customer or player. The objective of each control inside the organization paying little heed to work post be it workmanship, programming or client care, is to make games as fun as feasible for however many individuals as could be expected under the circumstances. So as to accomplish this point, it is in Blizzard Entertainments prime conviction that its laborers additionally appreciate the procedure of game creation. Promise to Quality, This is the most notable basic belief of Blizzard Entertainment, which isn't just applied in making the best gaming experience for the customers, yet in addition rehearsed in each part of their activity. They approach each assignment cautiously and genuinely, and look for fair input and use it to improve the nature of their work. Afterall, games are associated with their high caliber, and not how late they are discharged into the general population. Get along, Play Fair, In their business initial introductions are significant yet enduring impressions are the ones that issue. Snowstorm Entertainment endeavors to keep up an elevated level of regard and respectability in all associations with us, players, associates, and colleagues. The lead of every Blizzard Entertainment worker, be it on the web or disconnected, can think about the whole organization. Grasp your inward Geek, The representatives at Blizzard are urged to show their nerd side . Bleeding edge innovation, comic books, sci-fi, top-end video cards, activity figures with the kung-fu gripÃ£ ¢Ã¢â ¬Ã¢ ¦. Whatever it is theyre energetic about, it is important that every representative grasps it! Their interesting excitement assists with forming the fun, innovative culture of Blizzard Entertainment. Cheerful and genuinely enthusiastic laborers improve laborers, and what Blizzard Entertainment is about today. Each voice matters, Extraordinary thoughts can emerge out of anyplace. Snowstorm Entertainment is the thing that it is today a direct result of the voices of our players and of every individual from the organization. Each representative is urged to shout out, tune in, be conscious of different assessments, and hold onto analysis as simply one more road for good thoughts. All since Blizzard esteems its workers and tunes in to the various thoughts. Think comprehensively, Snowstorm Entertainment is a worldwide organization and wherever on the planet there are individuals who play Blizzard Entertainment games. While regarding the social assorted variety that makes individuals one of a kind, we endeavor to develop and bolster our worldwide gaming network. We likewise look for the most energetic, gifted individuals on the planet to enhance our organization and assist us with producing the future vision of Blizzard Entertainment. No nation is too large or unreasonably little for Blizzard to take on or consider. Lead duty, Snowstorm Entertainment accepts its items and practices can influence our representatives and players as well as the business on the loose. As one of the universes driving game organizations, they are focused on settling on moral choices, continually remembering the players, and setting a solid case of polished skill and greatness consistently and for other game organizations to epitomize. Learn and Grow The games business is ever-evolving. Innovation improves, methods change, and plan ways of thinking become obsolete. Since the establishing of Blizzard Entertainment, it has attempted to improve through understanding, showing each other and developing the craving to be the best at what they do. They consider this to be an individual duty just as the companys. Workers can depend on their friends, directors, and the organization itself to be strong and assist them with picking up the information and preparing they need. IV. A top to bottom SWOT Analysis This Analysis will assist us with bettering comprehend of Blizzard Entertainments Success and its shortcomings. Utilizing The SWOT Analysis model we can see the chances and revaluate the methodologies to adapt to its shortcomings. Qualities Great market position universally One of the absolute best pc game engineers and held in high regard by its clients. Exceptionally huge age bunch from its bigger client base. Takes Feedback from its players and clients rapidly and genuinely. Created World Of Warcraft to colossal achievement and praise. Shortcomings May come up short on some serious edge in some market fragments over opponent organizations Depends on its present game titles more than it should. Slow to discharge its games, frequently over the specified discharge date. Openings Business can be additionally enhanced into different enterprises, model, making a film which it is attempting to do now. Gain all the more gaming divisions. Increasingly changed games. Take a gander at a pristine kind of pc game to boomz everybody away. Opening up of other worldwide markets, getting more clients overall further. Cooperating with another pc gaming organization to have a co-venture. Dangers Other enormous pc game creating organizations, may represent some opposition with possibly progressively appealing designs or distinctive game classifications, Example, FPS. The time it takes to discharge a game may kill some gamers, or they may very well quit standing by all together. Constrained involvement with different ventures it should enhance into Robbery outsider customers, for example, Garena, lancraft blueserver and numerous others. Qualities Snowstorm Entertainment has a decent market position all around, which means in the games showcase it has a gigantic cut of the clients and exchanges that occur in it. Snowstorm Is all around regarded by the gamers, clients and different organizations the same for their great games which are all around planned and agreeable for an extremely wide age gathering. At the point when Blizzard comes out with another game different organizations will consistently attempt to better it gaining from its qualities. From children to grown-ups, snowstorm games have players each age extend, making it very much invited by all. Snowstorm Entertainment leaves no gamer from the easygoing gamer to in-your-face, proficient gamer fulfilled. The games Are sufficiently straightforward and quick for the easygoing gamer to play, yet in addition even with great serious potential. Unblemished, World Cyber Games (WCG) the world
Monday, June 1, 2020
Managerial Skills (Essay Sample) Content: StudentÃ ¢Ã¢â ¬s Name:ProfessorÃ ¢Ã¢â ¬s Name:Course: ÃâDate:Managerial SkillsWhat is one strength your generation brings to the workplace? (My generation is the millennial),I belong to the millennial generation. One characteristic of this generation is that they possess skills in the application of technology. In effect, they bring these talents to the workplace. In the contemporary workplace, those who have not embraced technology have no place in the 21st century. Cutting-edge technologies are the edge that is making businesses differentiate and survive the global market competition. The millennial group brings this strength to their jobs.What are some of the challenges when leading across generations and what is one strategy you can use to bridge the generational gaps in the workplace?Challenges in leading across generations may include lack of flexibility and compatibility between generational groups. Such workers normally have different visions and moti vation for doing their jobs. A manager can bridge these generational gaps by making work meaningful and dealing with flexibility issues. Besides, they can also connect vision and purpose to work.Based on your own experiences, what do you think are the most important factors that contribute to an effective meeting?I believe, based on experience, an effective meeting needs a skillful meeting manager and planner who can put a meeting into perspective. They are the leaders who lay down an excellent meeting strategy that explicitly communicates the meeting agenda. Therefore, the purpose of a meeting is also critical as it determines the goals of the meeting. The right participants are crucial, in addition, as they are the problem solvers whose contributions make a successful meeting. I think effectiveness is a reality if a meeting makes recommendation decisions in the end. In order to realize this end, I have found out that meetings adopt an odd number of participants to avoid decision p olarizations when decisions rules depend on the majority rule.Based on the 5P's for Effective Meetings in your textbook, which P do you think is the most useful for running effective meetings? Explain why.In order to run an effective meeting, I think the purpose P is the most important among the 5Ps. Purpose gives the rationale for holding a meeting in the first place. By so doing, one can know what the function of a meeting will be. In essence, where there is no justification for holding a meeting, the meeting manager should cancel it. When a meeting manager communicates the purpose of a meeting, people can make out the agenda. The right group of people is the target, and they get an obligation to sourcing critical information crucial to the meeting. In consequence, fruitful deliber... Managerial Skills Essay - 275 Words Managerial Skills (Essay Sample) Content: StudentÃ ¢Ã¢â ¬s Name:ProfessorÃ ¢Ã¢â ¬s Name:Course: ÃâDate:Managerial SkillsWhat is one strength your generation brings to the workplace? (My generation is the millennial),I belong to the millennial generation. One characteristic of this generation is that they possess skills in the application of technology. In effect, they bring these talents to the workplace. In the contemporary workplace, those who have not embraced technology have no place in the 21st century. Cutting-edge technologies are the edge that is making businesses differentiate and survive the global market competition. The millennial group brings this strength to their jobs.What are some of the challenges when leading across generations and what is one strategy you can use to bridge the generational gaps in the workplace?Challenges in leading across generations may include lack of flexibility and compatibility between generational groups. Such workers normally have different visions and moti vation for doing their jobs. A manager can bridge these generational gaps by making work meaningful and dealing with flexibility issues. Besides, they can also connect vision and purpose to work.Based on your own experiences, what do you think are the most important factors that contribute to an effective meeting?I believe, based on experience, an effective meeting needs a skillful meeting manager and planner who can put a meeting into perspective. They are the leaders who lay down an excellent meeting strategy that explicitly communicates the meeting agenda. Therefore, the purpose of a meeting is also critical as it determines the goals of the meeting. The right participants are crucial, in addition, as they are the problem solvers whose contributions make a successful meeting. I think effectiveness is a reality if a meeting makes recommendation decisions in the end. In order to realize this end, I have found out that meetings adopt an odd number of participants to avoid decision p olarizations when decisions rules depend on the majority rule.Based on the 5P's for Effective Meetings in your textbook, which P do you think is the most useful for running effective meetings? Explain why.In order to run an effective meeting, I think the purpose P is the most important among the 5Ps. Purpose gives the rationale for holding a meeting in the first place. By so doing, one can know what the function of a meeting will be. In essence, where there is no justification for holding a meeting, the meeting manager should cancel it. When a meeting manager communicates the purpose of a meeting, people can make out the agenda. The right group of people is the target, and they get an obligation to sourcing critical information crucial to the meeting. In consequence, fruitful deliber...
Wednesday, May 6, 2020
Luke Brown Professor Melissa Plaster English 1301 26 October 2015 The Hip Hop Genre and Culture The Hip Hop Genre can be reasonably argued, that the vast majority of musical production at any one time involves musicians working in relatively stable Ã¢â¬Ëgenre worldsÃ¢â¬â¢ within which ongoing creative practice is not so much about sudden bursts but the continual production of familiarity such rules may guide the notes a guitarist may select to play the way a star may conduct themselves in public the way the audiences behave and how journalists may aesthetically evaluate a performance When talking about the Hip Hop genre there are certain codes and traits which artists have been following for years and then there are certain stereotypes. For example you can look at a picture of Jay-Z taken in 1999, heÃ¢â¬â¢s wearing baggy clothing, Timberland Boots and a hooded top, you then look at a picture in 2003 and you see him wearing the same thing. These codes of familiarity are mimicked by the fans. In this genre one glance at someone s trainers turns into a full scale investigati on into the music they like whether theyÃ¢â¬â¢re into the straight up gangsta rappers like 50 cent or the Ã¢â¬ËblingersÃ¢â¬â¢ like Jay-Z. Hip Hop has always drawn a lot of its creative energy from the underworld, labels like Death Row, Murder Inc and Bad Boy reflect this. The style of dress code of pants falling from the waist comes from prison, where inmates arenÃ¢â¬â¢t allowed to wear belts. Prison and crime has alwaysShow MoreRelatedHip Hop Culture And Culture1196 Words Ã |Ã 5 PagesHip-Hop Culture and race have had a complicated relationship in the past two decades. It has been commonly referred to as Ã¢â¬Å"black musicÃ¢â¬ and a reflection of black culture. However, recent studies done by the Mediamark Research Inc. showed that 60% of rap music buyers are white. With the emergence of white, Latino, Asian, and other rappers with diverse backgrounds on the Hip Hop scene it is important recognize the changing color of the genre and the stereotype it holds as Ã¢â¬Å"black musicÃ¢â¬ . Black cultureRead MoreThe Hip Hop Culture1476 Words Ã |Ã 6 Pagesexploded my interest into the genre. I have listened to all of the considered essential hip hop Ã¢â¬Å"classicÃ¢â¬ and modern day albums. I noticed in these Ã¢â¬Å"classicÃ¢â¬ albums ve ry distinct change in subject matter and style that each of the different areas of rappers on where they originate from. Some people believe that the hip-hop culture is at a decline with the lose of this uniqueness and individuality shown in each of these areas. I too even thought that the hip-hop culture was at a decline until I wasRead MoreThe Music Of Hip Hop Essay1420 Words Ã |Ã 6 PagesThroughout the ages, genres such as Rock and Roll, Pop, RB, and Funk ruled the music spectrum. Before the flow of an emcee rocked the crowd with his/her rhythmic flow, a significant day in music history would soon influence the music industry, cultures, fashion, and make this new genre into a global phenomenon. This significant day was marked on August 13, 1973, or also known as the birthday of Hip-Hop. While Hip-Hop can be commonly be associated with being an emcee/rapper, the art of emceeingRead MoreHip Hop Rap Music And Subculture1643 Words Ã |Ã 7 Pages Hip-hop Rap Music and Subculture The topic I have chosen for this review is the association between a particular music genre and a subculture. In particular, the issue of focus is the association of the hip-hop rap genre with the black youth subculture in America. As a youth subculture, hip-hop emerged in the 1970s from New York CityÃ¢â¬â¢s borough of the Bronx. The African American community was the root of the music genre, which gained popularity in the 1980s and 1990s. As part of its growthRead MoreSimilarities Between Hip Hop And Grime1407 Words Ã |Ã 6 Pages Musical genre is defined as a category of artistic composition, as in music or literature, characterized by similarities in form, style or subject matter ( the music genre list 2017 ). TodayÃ¢â¬â¢s music comes in all styles and forms, this makes it difficult to categorize those new and emerging genres. Hip Hop and Grime both have a culture and are both a rap style genre, that shareRead MoreHip-hop was a cultural movement. It emerged in the early 1970s from the South Bronx. Hip-hop came1300 Words Ã |Ã 6 PagesHip-hop was a cultural movement. It emerged in th e early 1970s from the South Bronx. Hip-hop came from the Ã¢â¬Å"ghettoÃ¢â¬ and it became a cultural force of social protest and creativity. But from the 1990s and onward hip-hop changed from a cultural creative production to one of mass consumption. Hip-hop began to grow and through mass marketing targeting larger and whiter audiences hip-hop evolved in to relying on the images of crime and sex. Hip-hop has changed from a tool of social change to cars, womenRead MoreHip Hop And The Music Genre927 Words Ã |Ã 4 PagesWhat is Hip-Hop? According to Encyclopedia Britannica, Hip-Hop can be delineated as a music genre consisting of a stylized rhythmic music that commonly accompanies rapping, a rhythmic and rhyming speech that is chanted.1 Originating from a disparaged subculture in the South Bronx and eagerly spreading through other sectors of New York City during the 1970Ã¢â¬â¢s, Hip-Hop evolved from formerly being a relatively fraudulent style to currently being a commercialize d and disseminated music genre among diverseRead More A Violent Message in the Art of Popular Culture Essay1679 Words Ã |Ã 7 PagesA Ã¢â¬Å"ViolentÃ¢â¬ Message in the Art of Popular Culture Many people believe that present-day music cause division, tension, and sometimes violence. However, it is acknowledged as art in popular culture. Art in popular culture revolves around action movies, television sitcoms, and provocative song lyrics, which have themes centered on explicit sexuality. Art in popular culture is embodied in music, dance, photography, and other artwork that embraces the ills of the world and acknowledges thatRead MoreThe Birth Of Hip Hop Essay1695 Words Ã |Ã 7 Pagesthe birth of hip-hop was actually in 1520 on Sedgwick Avenue. DJ Kool Herc was acknowledging as the founding father of hip-hop at the time because of his unique ear of hearing and creating different music. ItÃ¢â¬â¢s very rare that people will mention this because at the time hip-hop wasnÃ¢â¬â¢t a force in the music industry until the late 1990Ã¢â¬â¢s. ItÃ¢â¬â¢s been approximately 30 years since the pertinent genre was actually recognized for its production in the music business. O ver the time, hip-hop became legendaryRead MoreThe Origination Of Hip Hop1237 Words Ã |Ã 5 PagesThe Origination of Hip Hop Laresia Parks English III, Period 05 2 December 2015 Hip hop finds its ethnic origins in Jamaican music and DJs in the seventies who used two turntables to create longer drum breaks in records for dance parties giving rise to Ã¢â¬Å"break dancingÃ¢â¬ and Ã¢â¬Å"break dancersÃ¢â¬ now known as b-boys and b-girls (A Closer Look At a New Hip Hop Movement). DJs and MCs popularized the technique of speaking over beats and the culture expanded to include street dance and graffiti art. Embraced
Tuesday, May 5, 2020
In the first part of our report, we investigate if a 35 basis points yield spread represents mispricing of two bonds, both with the same maturity but one with a coupon rate of 10. 625% and the other 4. 25%. Our investigation also determines if the yield spread represents an arbitrage opportunity. In our investigation, we calculate the theoretical yield spread between the two bonds and compare the figure with the observed yield spread. It is cited in the case that the observed yield spread could be due to different liquidity premium for each bond or simply due to different durations. Through our calculations, we discover that the difference in duration between the two bonds does result in different theoretical yields, 2. 899% for Bond4. 25 and 2. 639% for Bond10. 625. However, the theoretical yield spread should be -26 basis points instead of the observed 35 basis points. Hence, we conclude that while difference in duration does result in a difference in yield, the observed yield spread of 35 basis points cannot be explained by duration. Further, the 61 basis points difference between the observed and theoretical yield spreads indicates that Bond10. 625 is underpriced relative to Bond4. 25 and the proposed strategy of long Bond10. 625 and short Bond4. 25 can work. In the second part of our report, we investigate if FraneyÃ¢â¬â¢s duration-neutral strategy is immune to shifts in yield curves. We perform illustrative examples that show that the value of the arbitrage portfolio increases in the event of a steepening yield curve and decreases in the event of a flattening yield curve. Additionally, we highlight that even with a duration-neutral strategy, parallel shifts in the yield curve will still affect the portfolioÃ¢â¬â¢s value due to the effect of convexity. Further, as the overall portfolioÃ¢â¬â¢s convexity is negative, any parallel shift in the yield curve will lead to a decrease in portfolio value. We support our points with detailed calculations found in the Appendix. Lastly, we take into account the more practical aspects of FraneyÃ¢â¬â¢s proposed strategy by considering the relevant market risk and institutional risk factors. The market risks involved include yield curve risk, inflation risk and credit risk. Institutional risks include changes to financing costs that Franey might incur, such as a higher hair cut and margin call requirements should the yield spread widen. Our risks evaluation shows that the institutional risks of margin calls and higher hair cut represent the most significant risks to FraneyÃ¢â¬â¢s strategy. Inability to meet additional capital requirements could lead force selling of FraneyÃ¢â¬â¢s position, resulting in unplanned losses. We take into further consideration the unpredictability of liquidity premiums during the time of the case study and determined that FraneyÃ¢â¬â¢s proposed high leverage arbitrage strategy was highly risky. Through our analysis, it becomes clear to us that while the observed 35 basis points yield spread represents an arbitrage opportunity, the unpredictability of liquidity premiums means that to execute this arbitrage strategy safely, an ability to hold the portfolio for a long period or through to maturity is required. Given the high degree of leverage that Franey is intending to take, we think that the proposed trade is too risky and should not be made. 1) Verifying an Arbitrage Opportunity Price Table 1 Ã¢â¬â Theoretical Bond Prices and Yields. The 3. 62% calculated actual yield for Bond10. 625 differs from the 3. 61% provided in the case study. This is likely due to the difference in precision of Periods used by Bloomberg and our excel calculations (ie. Bloomberg may not have used periods of 0. 5667). We calculated the theoretical yield and theoretical price of each bond by summing the individual present value of the cash flows, which were discounted using the respective zero-coupon rates provided for each period up to August 2015. Since the zero-coupon rates given are at an annual rate, we obtained the semi-annual rate by taking half of the respective annual zero-coupon rate of each period. Through this method, we obtained theoretical yields of the 4. 25% coupon bond and 10. 625% coupon bond to be 2. 899% and 2. 639% respectively. The corresponding theoretical prices of the bonds are $108. 27 for the 4. 25% coupon bond and $149. 31 for the 10. 625% coupon bond (see Table 1 above). Comparing each bondÃ¢â¬â¢s theoretical yield and price to its actual yield and price, we find that both bonds are underpriced. However, this alone is insufficient to conclude that an arbitrage opportunity exists, since our calculated theoretical prices ignore the effects of liquidity premium. As, in this exercise, we are unable to calculate what the true liquidity premium for each bond should be, we consequently do not have a true price for each bond to compare with and ascertain whether each bond is underpriced (ie. both the theoretical and actual prices may not be the true price). Nonetheless, we have calculated the implied liquidity premium for each bond as the difference between the theoretical yield and actual yield (see Table 1 above). Yield Spread To better determine if an arbitrage opportunity exists, the theoretical and actual yield spreads of both bonds can be compared. This determines whether both bonds are properly priced relative to each other, eliminating the need to have true prices for both bonds to determine if each bond is rightly priced. Based on our calculations, the theoretical yield spread (Bond10. 625 Ã¢â¬â Bond4. 25) should be -26 basis points (see section below on Ã¢â¬Å"DurationÃ¢â¬ for more explanation) instead of the 35 basis points observed, representing a difference of 61 basis points. Therefore, as price distortions stemming from liquidity premiums subside, we expect the yield spread to tend towards the theoretical -26 basis points. In the unlikely event that the effects of liquidity premium persist for a long time, the yield spread should still converge to zero near to or at maturity of both bonds. As such, we conclude that the 10. 625% coupon bond is underpriced relative to the 4. 25% coupon bond and the 4. 25% coupon bond overpriced relative to the 10. 625% coupon bond. Hence, we believe that an arbitrage opportunity exists and FraneyÃ¢â¬â¢s strategy of long 10. 625% coupon bond and short 4. 25% coupon bond will work. Duration We find that duration is unable to explain the apparent mispricing. Our calculated theoretical yields for both bonds indicate that the bond with higher duration has a higher yield than the bond with lower duration. This is in line with the slope of the interpolated yield curve, which is upward sloping. When the yield curve is upward sloping, the bond with higher duration should command higher yield since a greater proportion of itsÃ present value will be reduced by higher future interest rates, as compared to the bond with lower duration. Conceptually, the scenario observed in the case study where the bond with higher duration has a lower yield than the bond with lower duration should exist only when the yield curve is downward sloping. Therefore, duration does not explain the apparent mispricing. The price difference observed may be attributable to other factors such as the premiums on a bond. Examples are premiums paid on interest rate risk, default risk and liquidity preference. However, the price difference seems to be primarily driven by the liquidity premium the Ã¢â¬Å"on-the-runÃ¢â¬ bond commands. This is because default risk would be similar as the bonds are issued by the same organization and since the yield curve is expected to increase, the premium paid on interest rate risk would be minimal. Also, the -26 basis points yield spread as a result of difference in duration indicates that there is significant mispricing in the observed yields, since the yield spread before taking into account effects of liquidity premium should be -26 basis points and not 35 basis points. Testing Impact of Shifts in Yield Curve on Arbitrage Portfolio Value To find out the effects of non-parallel shifts in the yield curve, we simulated two scenarios: 1) steepening and 2) flattening. Steepening Table 2 Ã¢â¬â Illustrative Example of Steepening Yield Curve In the case of steepening, we assumed that the interest rate will increase cumulatively by 0. 1% for every period (one period is six-months) and decrease in the same manner in the case of flattening. After including these effects to the given spot rates, we used the new interest rates to discount the cash flows of the two bonds. In the case of steepening, the gain on the portfolio will be 28. 64% or $49. 93 (=$224. 29 Ã¢â¬â $174. 36) based on the new portfolio value of $224. 29 and an initial actual investment of $174. 36 (=10. 625% bond value ($1,418. 28 + $23. 68 accrual) Ã¢â¬â 4. 25% bond value ($1,256. 37 + $11. 23 accrual)). If we calculated returns based on the theoretical bond prices and consequent theoretical initial investment of $221. 91, the gain will be 1. 07% or $2. 38. These figures are calculated based on each $1,000 face value of Bond10. 625 longed and $1,185. 60 Bond4. 25 shorted. Flattening Table 3 Ã¢â¬â Illustrative Example of Flattening Yield Curve In the case of flattening, the gain in the portfolio will be25. 56% or $44. 57 (=$218. 93 Ã¢â¬â $174. 36) based on the new portfolio value of $218. 93 and an initial investment of $174. 36. If we used the theoretical initial investment of $221. 91, there will be a loss of 1. 34% or $2. 98. Similarly, these figures are calculated based on each $1,000 face value of Bond10. 625 longed and $1,185. 60 Bond4. 25 shorted. Discussion of Results In conclusion, in both cases of the non-parallel shifts in the yield curve, the value of the arbitrage portfolio will increase since the current prices of the two bonds are mispriced relative to each other. However, if the two bonds are trading at their theoretical prices, steepening of the yield curve will increase the value of the arbitrage portfolio but in the case of flattening, it will decrease. We would like to point out that even though FraneyÃ¢â¬â¢s strategy is duration neutral, the value of the arbitrage portfolio will change even if there is a parallel shift. This is due to the effects of convexity. Based on our calculations, the 4. 25% bond has a higher dollar convexity than the 10. 625% bond. Therefore, when interest rates increase, the 4. 25% bond will experience lower price depreciation due to convexity and when interest rates decrease, the 4. 25% bond will experience higher price appreciation due to convexity. Since the portfolio convexity is negative (see appendix 1 for detailed calculations and breakdown), the value of the arbitrage portfolio will decrease if there are any changes in interest rates. 3) Market risks Market risk which in this case refers to the exposure to movements in the interest rates and shifts in the yield curve is best measured by duration as it is a summary measure of maturity, coupon and yield. Bonds with lower duration are less sensitive to change in yield while bonds with higher duration are more sensitive to changes in yield. Further, it is imperative to point out that in volatile interest rate environment, duration is an inadequate measure of interest rate risk as it does not serve as a good approximation during large interest rate shifts. a) Yield curve risk As discussed previously, even when a portfolio is duration-neutral, it would still be exposed to yield curve risk. More specifically, the portfolio would no longer be duration-neutral in the event of large parallel shifts or non-parallel shifts in the yield curve. While this primarily stems from the differences in maturities of bonds that comprise a bond portfolio, other factors like the yield and cash flows of bonds could also cause yield curve risk to arise in a portfolio. Bonds with longer maturities tend to be more sensitive to shifts in yield curve and this translates into greater price volatility. However, what we find most unique about this portfolio is that it comprises of merely two bonds which have the same maturity. In addition, when we simulated a steepening and flattening of the yield curve, we saw a gain on the arbitrage portfolio even though it was no longer duration-neutral. The yield curve risk would only arise if the bonds were trading at their theoretical prices, in which case, would have already been sold to realize the arbitrage profit. Hence yield curve risk is not very relevant in this case. b) Inflation risk This is the risk that will diminish the value of coupon cash flows received from the bond due to inflation. This risk is of moderate nature c) Reinvestment risk This is the risk that coupons payments received from the bond would be reinvested at lower than expected rates due to fall in interest rates. Reinvestment risk is typically expected to be offset by capital gains on the bondÃ¢â¬â¢s market value when interest rate falls. 4) Institutional Risks a) Liquidity risk / Risk of margin call As this is an arbitrage strategy, some form of financing would be needed from brokers and in return, Franey would be required to post margin. Any extreme market volatility could lead to widening of yield spreads due to higher perceived illiquidity of the Treasury which expires earlier. This would in turn require Franey to post higher margins. In the event of insufficient funds, this could ultimately lead to a margin call. Franey would be forced to realize the losses on his position even though he would have otherwise made a profit if he had held both bonds to maturity according to his arbitrage strategy. b) Credit risk Credit risk is the risk that the issuer fails to pay coupons or ultimately defaults on the bond. This is less relevant as compared to portfolios comprising institutional bonds as US Treasuries as generally considered to be free of credit risk. 5) Conclusion We have shown in our report that there exists an arbitrage opportunity given the difference between the theoretical yield spread (-26 basis points) and actual yield spread (35 basis points). Despite so, a key uncertainty lies in the timing of realisation of the arbitrage profit. As stated in the case study, if held to maturity, the arbitrage strategy would yield a riskless profit with present value of $26 for each $1,000 face value of Bond10. 625 longed and $1,185. 60 Bond4. 25 shorted, before taking into consideration financing costs. However, the case suggests that Franey would like to realise his profit and close out his position as soon as the yield spread falls back down to zero. Hence how soon Franey is able to realise the arbitrage profit will depend on the direction and magnitude of change in the yield spread of the 2 bonds. We further observe that interest rate environment at the point in time of the case study was volatile. This is evident from the fact that Treasury yield spreads that have historically been near to zero have widened significantly and more frequently during the period of the case study. Such volatility contributes to the risk of this arbitrage strategy since Franey is in a way speculating that the yield spread will narrow significantly soon. Should the yield spread narrow quickly and greatly, the strategy will yield high returns with little financing costs incurred. However, should the yield spread widen or fail to narrow greatly, more financing costs will be incurred. Institutional risk factors, as elaborated in the earlier section, will also come into play. In particular, additional capital requirements resulting from yield spread widening or increase in hair cut represents a significant risk. Should Franey be compelled to force sell part of his portfolio at unfavourable prices, he could incur substantial losses that would render the arbitrage strategy unprofitable. It is clear to us that the ability to hold onto this arbitrage portfolio for a long period or through to maturity is important in rendering this arbitrage strategy a safe one. Considering the high degree of leverage that Franey is planning to use for this strategy and the possible significant additional capital requirements that Franey may have to contribute should conditions change unfavourably, FraneyÃ¢â¬â¢s holding power is questionable. This is thus a high-risk strategy. Keeping in mind the unpredictability of yield spreads during the time of the case study, we are of the opinion that Franey should adopt a more prudent approach and not make the trade. Appendix 1
Saturday, April 18, 2020
Meteorites Imagine that while you're on a peaceful Sunday afternoon stroll with your family, a large dark gray ball comes out of nowhere, just missing the head of your small child, shakes the earth, and produces a large crater in the ground a few feet ahead of you. This ball wasn't from the young boys playing baseball across the street, and it wasn't an acorn from the tree overhead. This ashen ball was a meteorite falling from the sky. A meteorite is a particle from space, large enough to enter the earth's atmosphere, and potentially cause damage to the surface of the earth, a house, or a car. Although almost getting struck by a meteorite while outside on a walk is a very rare occurrence, a collision with a meteorite can be fatal. Scientists have never encountered a fatality due to a meteorite, but several deformations in the surface of the earth have been linked to meteorite collisions. A meteorite comes from an asteroid or is a chip off of a moon or other planet. Many times a planet or other solar object is heated beyond capacity and, consequently, explodes thrusting many fragments into the universe. Some of these fragments are large enough to successfully enter the earth's atmosphere and hit the surface at amazing speeds. Most meteorites are blasted apart by fire while entering the earth's atmosphere. Meteorites are often dark gray or black because of their fiery descent. They are very rough on the outside. They are often identified by scientists by their composition. A meteorite has a very rare element, iridium, present in its makeup. This makes meteorites easy to decipher from surface rocks because all of the earth's iridium sank to the core many years ago. Many meteorites are filled with metals that give them a rich magnetic power. Meteorites also contain carbons. Meteorite collision has been responsible for many craters in the surface of the earth, and it continues to shape the land. As for meteorite impact becoming a threat to civilization, it is highly unlikely. The Torino Scale is a device used to measure the predicted threat of a meteorite colliding with the earth. Very few meteorite impacts large enough to threaten civilization are rated over zero on the Torino Scale. This means that it is unlikely that a very large meteorite will strike the earth hard enough to cause such damage. It is improbable that a meteorite will do much damage, and any large meteorite able to cause such damage will probably not enter the earth's atmosphere in tact. The Torino Scale rates potential collisions from zero to ten. A "zero" rating is given to those objects that have the least likelihood of entering the earth's atmosphere and doing any damage. A "ten" rating is given to those objects that will certainly collide with the earth and have the ability to cause devastating damages. Most objects rated one or higher usually change paths, and the rating is changed in time. Although it is unlikely, the next time you're out for a Sunday afternoon stroll and are almost nailed by a flying ball, pick it up. Check it out. You may have discovered a meteorite; a rock from the world beyond that was, for a long time, a complete mystery to us. Bibliography 1. Bennett, Donahue, Schneider, Voit. The Cosmic Perspective. Addison-Wesley Longman, Inc. 1999. 2. www.ast1.spa.umn.edu 3. www.nasa.com 4. www.yahoo! "Meteorites."