hey how about David Cameron write an invocation to ecomonic growth ... 


21.22,  25.07.12. 
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British ministers have been ordered to lobby cash-rich emerging nations such as Brazil and China during the Olympics to win multi-billion-pound contracts and help the stuttering UK economy.

A Government lobbying operation of unprecedented scale is about to begin as foreign diplomats and businessmen descend on London for the 2012 Games.

The wish-list includes lucrative Chinese healthcare deals, the construction of Brazilian shipyards and Russian railways, deepwater-drilling off the coast of Mexico and controversial oil exploration in Kazakhstan. Downing Street wants to secure at least 

£4 billion of new deals during the Olympics.

1.50am 23.07.12.
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The volatility index ("VIX") is an index which measures expectations of volatility, or fluctuations in price, of the S&P 500 index. Higher values for the volatility index indicate that investors expect the value of the S&P 500 to fluctuate wildly - up, down, or both - in the next 30 days.

The index, commonly known by its ticker VIX, is also known as the "fear index" because a high VIX represents uncertainty about future prices. The index is calculated using the price of near-term options on S&P 500 index.[1] Because the value of an option is closely linked to the expected volatility of its underlying security, options prices can be a useful indicator of investors' expectations of volatility.

The VIX hit its historic high of 89.53 on October 24, 2008 on concerns about the 2008 Financial Crisis. Prior to this crisis, the VIX had peaked at 38 on August 8, 2002.

19.26, 23.07.12. 

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An interest-rate cap is an OTC derivative that protects the holIer from rises in short-term interest rates by making a payment to the holder when an underlying interest rate (the "index" or "reference" interest rate) exceeds a specified strike rate (the "cap rate"). Caps are purchased for a premium and typically have expirations between 1 and 7 years. They may make payments to the holder on a monthly, quarterly or semiannual basis, with the period generally set equal to the maturity of the index interest rate.


Each period, the payment is determined by comparing the current level of the index interest rate with the cap rate. If the index rate exceeds the cap rate, the payment is based upon the difference between the two rates, the length of the period, and the contract's notional amount.


Say the property has an NOI of $125,000, and the price is $1,125,000.


$125,000/ $1,125,000 = 11.1% cap rate


But what does that number tell you? Does it tell you what your return will be if you use financing? No. Does it take into account the different finance terms available to different investors? No. Then just what does it show?


What the cap rate above represents is merely the projected return for one year as if the property were bought with all cash. Not many of us buy property for all cash, so we have to break the deal down, usually by trial and error, to find the cash on cash return on our actual investment using leverage (debt) …


Caps are usually quoted with an up-front premium. It is with an implied volatility across all caplets ... If they are quoted with an implied volatility, 




1.26pm , 21.07.12.