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{{a|pb| | {{a|pb|{{image|Trigger|jpg|A [[NAV trigger]] yesterday.}} }}{{NAV trigger capsule}} | ||
All rather tiresome, and quite unnecessary if you have the right, as most [[prime broker]]s do, to hike up [[initial margin]] at your discretion.<ref>I know, I know, there may be a [[margin lockup]]. That’s really the best place for the [[NAV trigger]], as you may come to agree if you read on.</ref> | All rather tiresome, and quite unnecessary if you have the right, as most [[prime broker]]s do, to hike up [[initial margin]] at your discretion.<ref>I know, I know, there may be a [[margin lockup]]. That’s really the best place for the [[NAV trigger]], as you may come to agree if you read on.</ref> | ||
===Types of [[NAV trigger]]=== | ===Types of [[NAV trigger]]=== | ||
Often there are three levels of trigger: '''Monthly'''; '''Quarterly''' and '''Annually'''. There is also an “absolute” NAV trigger, judged from the inception of the relationship to the current point in time, though the sense this one presumably makes to the [[Worshipful Company of Credit Officers]], has for many years eluded the [[JC]]. In any case you may find yourself in a [[tedious]] argument about whether your periodic NAV triggers should be “rolling” (that is, judged for the period from any day, even one on which there wasn’t an official NAV) or “point-to-point” (that is, judged between NAV calculation periods | Often there are three levels of trigger: '''Monthly'''; '''Quarterly''' and '''Annually'''. There is also an “absolute” NAV trigger, judged from the inception of the relationship to the current point in time, though the sense this one presumably makes to the [[Worshipful Company of Credit Officers]], has for many years eluded the [[JC]]. In any case you may find yourself in a [[tedious]] argument about whether your periodic NAV triggers should be “rolling” (that is, judged for the period from any day, even one on which there wasn’t an official NAV) or “point-to-point” (that is, judged between NAV calculation periods), which is more observable, being based on official NAV, but still arbitrary, as it gives you just a once-a-month opportunity to create a stink.<ref>Then again, you could make the point that cutting an official NAV once a month also gives one a somewhat arbitrary sense of the fund’s performance, as it does not track intra-month volatility.</ref> | ||
===The exhilarating process of waiving a NAV trigger breach=== | ===The exhilarating process of waiving a NAV trigger breach=== |