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Derivatives
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Stock Options
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Stock Warrants
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Interest Rate Swaps
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Interest Rate Caps, Floors
and Collars
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Swaptions
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Futures and Forward
Contracts
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Managed Futures
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Managed Futures
Managed
futures are mutual fund-like investments that specialize in trading futures
contracts. They are managed by professional money managers known as
commodity trading advisors (CTA). These funds are usually highly leveraged,
risky, and somewhat illiquid investments. However, they offer portfolio
diversification, and in many cases their returns do not correlate with stock
and bond market price swings. They can complement one’s portfolio and help
smooth overall investment returns. Managed funds are used by affluent
investors as an alternative asset class.
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