Percentage Change in a Currency Relative to Another Currency
Calculating Percentage Appreciation/Depreciation To calculate the percentage change, one needs to clearly understand the base currency and the price currency. Let’s take the Chinese Yuan (CNY) and South African Rand (ZAR) example. The ZAR/CNY exchange rate increased from 1.6459 to…
The Foreign Exchange Market
Functions of the Foreign Exchange Market The foreign exchange market facilitates the international trade of goods and services. Companies and individuals from different countries need to conduct business transactions in foreign currencies.
Exchange Rates
The term exchange rate refers to the price of one currency in relation to another currency. For example, the exchange rate between the Chinese Yuan (CNY) and the South African Rand (ZAR) is 1.93. This means that the base currency,…
Calculate the Forward Rate in Each Currency
Spot market currencies are exchanged for immediate delivery in the forward rate market, whereas contracts are made to sell or buy currencies for future delivery. For example, when a company in the U.S. buys goods from England valued in British…
Hedge Funds
Hedge funds employ strategies to offer their investors absolute returns (net of fees and taxes). These private funds are actively managed and employ aggressive strategies across asset classes. Characteristics of Hedge Funds Hedge funds invest in many different asset classes,…
Natural Resources
Commodities and raw land are the two main categories of natural resources for investment purposes. Commodities Commodities are tangible goods that can be standardized in quality, location, and delivery in the process of investing. Commodities may be classified as hard…
Infrastructure Investments
Infrastructure investments consist of real, long-lived, and capital-intensive assets. They provide essential services to the public. Examples include airports and healthcare facilities. Infrastructural investments have increased due to demand-side growth as well as supply-side growth. Many investors are investing in infrastructure…
Real Estate
An individual or institution can purchase real property for private use, investment, or both. This explains why the real estate residential market consists of individual single-family, detached homes, and multi-family attached units. Commercial real estate includes office buildings, retail shopping…
Private Debt
Private Debt Private debt describes different forms of financing extended to private entity investors. Private debt is classified into direct lending, mezzanine loans, venture debt, and distressed debt. Direct Lending Direct lending involves private debt investors offering capital to borrowers…
Private Equity
Private Capital Private capital refers to investment in assets that are not available in public markets. Private capital consists of private equity and private debt. Private Equity Private equity is an investment in privately owned or public companies to privatize…
