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Tranched Value Securities

Author

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  • Zvezdin, Nikolay

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.

Suggested Citation

  • Zvezdin, Nikolay, 2019. "Tranched Value Securities," MPRA Paper 92302, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92302
    as

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    File URL: https://mpra.ub.uni-muenchen.de/92302/1/MPRA_paper_92302.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    tranched value securities; value tranching; derivatives; securitization; risk transfer; financial instrument; structured products; securities; alternative investments; financial innovation;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G00 - Financial Economics - - General - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G19 - Financial Economics - - General Financial Markets - - - Other

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