The Expectity Of Strengths And Aspects Of British National Stocks
1429 WordsAug 5, 20176 Pages
For Palestine, our results prove Narsey’s hypothesis correct. Indeed, over time, the currency board held lower-yielding, shorter-maturity securities for British benefit.
The graph below shows the average interest and years to average maturity each year. Aside from the years around 1936, the average interest decreased almost each year. Furthermore, we reached the same conclusion after doing a weighted average calculation. Most years, British national securities made up most of the portfolio (as will be discussed later). Therefore, this weighted average calculation demonstrates that the British national securities brought down the interest and maturity. Especially near liquidation, the board held securities such as war loans and…show more content…
However, up until about 1935, the board held very few British national and subnational securities. Over time, the board began to hold more, higher-valued British national securities. The graph below shows the percentage of total securities held in each of our three categories. The graph below, which plots the security composition in pounds, shows that each year when the board had a large portfolio, it overwhelmingly consisted of British national securities. The asset composition also shows the large holding of British national securities. In the balance sheet, deposits at banks, Crown Agents, etc. make up most of the assets until the liquidation phase, at which point the board held a large portion of its assets in British treasury bills. The graph below plots the same data in pounds; most years, only deposits and treasury bills appear noticeable when compared to the British national securities. The interest and maturity data clearly support Narsey’s hypothesis. The board held lower-interest, shorter-maturity securities over time. With its portfolio almost complete made up of British national securities, the board’s holdings further benefit Britain. When factoring in the balance sheet, the most notable assets are deposits and British treasury bills - both short-term securities for Britain. As such, we