Tranched Value Securities

Zvezdin, Nikolay (2019): Tranched Value Securities.

Abstract

Structured financial products and derivatives were one of the major financial innovations since 18th century, which improve market completeness by transforming risk-sharing mechanisms. Since then, thousands of derivative types were created, and its market has grown to over six-times greater than global GDP, but capital markets still exhibit efficiency only to a limited extent. This paper assesses the potential performance of Tranched Value Securities (patent pending) – a new financial instrument that transforms a single underlying to asymmetrically paying derivative, and has a potential to further improve capital markets by facilitating risk sharing, and satisfy a wide range of investment objectives.

• Item Type: MPRA Paper
• Language: English
• Keywords: tranched value securities; value tranching; derivatives; securitization; risk transfer; financial instrument; structured products; securities; alternative investments; financial innovation
• Subjects: G - Financial Economics > G0 - General; G - Financial Economics > G0 - General > G00 - General; G - Financial Economics > G1 - General Financial Markets > G10 - General; G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates; G - Financial Economics > G1 - General Financial Markets > G13 - Contingent Pricing ; Futures Pricing; G - Financial Economics > G1 - General Financial Markets > G19 - Other

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