Report on Greydanus, Boeckh and associates (GBAs) portfolio management styles
GBA was founded in 1984 by Jake Greydanus. The initial name which was given to this company was the Greydanus & associates investment counsel limited. The aim of the company is to provide the fixed management of income to all the pensions and endowments funds. In 1986, Boeckh purchased a half of the firm and this led to the change of the name of the company to Greydanus, boeckh & associates incorporation. This research aims at analysis the organization while elaborating the parts of the case study which are important about the company.
GBA has currently managed $1.7 billion which is…show more content…
In most of the cases which involved the management of new ideas and the observed relationships in comparison with the bond prices, the firm adopted changing models in the style of its management. This is appropriate because the variables in the market usually change and adopting one model may not be the suitable move to take.
The strategies which are used by this company are not advantageous in the sense that most of the corporate debts in the organization usually carry considerable amounts of higher yields. Producing above average returns in the organization, with risk set a lower level than the normal risks would be an appropriate strategy which has to be used.
The outlook for changes in interest rates
The weak economic growth in Asia ad in Europe has helped in benefiting Canada and the US. Asia and Europe had also faced deflationary pressures which were caused by the changes in the rates of interest rates in the economy. The risk of the inflationary pressure in the US led to the increasing concern of the federal reserves. The Canadian bonds have been trading at a considerably lower yield as compared to the US bonds in the market. The situation was supposed to be maintained if the Canadian dollars in the economy appreciated relatively to those of the US dollars in the economy. The outlook for the bonds in the economy looked to be very attractive an aspect which was attributed to the changes in