Leverage Strategies For Maximizing Profits In Boston’s Forex Market – The “three horizons” concept emerged from a multi-year project by McKinsey & Company and continues to offer an appropriate growth strategy for evaluating and managing both current and future business opportunities. Under this framework, the first horizon focuses on maximizing profits from the organization’s core business (so if you own a donut shop, what’s the best way to achieve the most value by creating and selling donuts?); the second horizon is about new growth opportunities such as entrepreneurial ventures (let’s open more donuts!); and the third horizon focuses on long-term initiatives such as new investments and research (let’s create a calorie-free donut!). The theory of three horizons is that the management and development of these capabilities should not be seen as progress, but should occur simultaneously for successful and sustainable growth. The Harvard Business Review notes that, as originally conceived, the three-horizon structure assigned relative delivery times to each horizon—assuming, for example, that the third horizon would take months or even years to deploy. Technological advances have dramatically changed the landscape, and today many disruptions can be quickly implemented by repurposing existing Horizon One technologies into new products or business models. Before the pandemic, many organizations that create content and learn were not yet using digital technologies or opted for temporary solutions. It is now clear that online learning and training is here to stay, and both short-term and long-term strategies will be critical to success. Despite the current crisis, it is important not to be overwhelmed by the management of the first horizon and neglect the opportunities of the other two horizons. Smart leaders will look for technology that delivers tactical wins to support the first growth horizon, but also has the flexibility and capacity to support future initiatives. Publishers, educators, educational companies and other content creators are facing big challenges in the age of Covid. They must improve the way remote teams collaborate by leveraging and organizing all available content on one unified platform with smart user and metadata management. This will significantly reduce the number of errors, shorten the time to market and provide significant savings. Also, technology that allows them to easily use legacy assets to update or modify existing content is an easy way to innovate. A good content management platform includes content reuse tools such as meta tags, audience tags, and derivative projects. Ensuring that this content is easily distributed to any end user in any form – whether print or digital – further optimizes efficiency. An end-to-end platform that does all of these functions is great news for organizations whose core business is content creation. All the tools are there for digital collaboration of a distributed team to create and edit, whether creating original content or using legacy content to create new products. But in order to innovate and grow their business – and, indeed, to survive – it is necessary for those same organizations to keep an eye on the other two horizons, even as they optimize the first. They must implement technology now that can be repurposed to support rapid innovation at any point in the future. An example of the three-horizon structure applied to the publishing industry. Perhaps reaching new types of users through new distribution channels is a second goal. A visionary leader will choose a content management platform that also supports the flexible creation of mobile applications, deployment in an LMS or, for example, the creation of subscription services. Similarly, if an organization sees a future in adaptive learning, the platform it chooses must be flexible enough to quickly integrate with server-side adaptive technology. The pandemic crisis has created a sense of urgency for organizations to “go digital” quickly to compete, but it’s important for content creators to think ahead as they begin their digital transformation. Smart leaders will choose a strategic technology platform that not only enables them to improve the way they create content to maximize ROI now, but also provides the types of tools they will need to drive long-term innovation for years to come.

Gjergj is the President and CEO of Gutenberg Technology. Before joining GT, Gjergj worked internationally in the software and media industries, with experience in the digital transformation of publications. He studied in Milan, is polyglot and co-founded a crowdfunding company while living in France.

Leverage Strategies For Maximizing Profits In Boston’s Forex Market

Leverage Strategies For Maximizing Profits In Boston's Forex Market

Learn how to optimize and automate your content production and distribution process. A member of the GT team will contact you to set up a live demo customized to your needs. This site and all information contained on it is for general and/or educational purposes only. Individuals should consult an investment advisor before making any investment decisions. By using the site, I agree to the applicable terms for financial intermediaries, institutional investors and individuals.

Value/risk Matrix In A Nutshell

Most closed-end funds use leverage to increase the fund’s yield, income, or both. On the following pages, we provide an overview of how leverage works, the strategies used to create leverage and the associated costs, and the potential benefits and risks associated with using leverage.

A closed-end fund (CEF) raises capital by selling a fixed number of shares at a time through an initial public offering (IPO). After the initial capital is raised, the fund “closes” and usually no longer directly offers its shares for sale. Instead, after the IPO, the fund’s shares are traded on an exchange such as the NYSE or NASDAQ. Unlike a typical mutual fund, CEF shares are not created or redeemed in response to investor activity, which means the fund can better maintain a stable asset base.

Norms limit the ratio of a fund’s leverage to its total assets, and CEF’s relatively stable asset base makes it easier and more consistent to stay within that ratio. For this reason, leverage tends to be more common in CEFs than in other retail investment products.

CEFs use leverage to increase the fund’s income and return. It is important to note that leverage increases portfolio efficiency, both positive and negative:

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The hypothetical example below shows how leverage can increase the returns of a closed-end fund. It is worth noting that historically, leverage has often provided additional income that more than offsets the associated costs and additional volatility. Moreover, a long-term view is important to realizing the potential positive results that leverage should provide.

To create leverage, CEF raises capital by borrowing at short-term rates and then uses the proceeds to make additional investments in its portfolio. The fund may also raise itself by issuing preferred securities (preferred shares of the fund) that pay variable or fixed dividends at short-term rates. Keeping certain investments in a portfolio—portfolio leverage—is another leverage strategy.

The main costs associated with leverage are current costs of dividends and interest, but there may also be costs of issuing or administering the leverage. A fund’s leverage strategy is successful when, after accounting for associated costs, common shareholders receive higher distributions or total returns than they would have without leverage.

Leverage Strategies For Maximizing Profits In Boston's Forex Market

While leverage can help increase the distribution and return potential for a fund, it also increases the volatility of a fund’s net asset value (NAV) and potentially increases the volatility of its distribution and market price.

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Uses different leverage strategies in its CEFs and may sometimes use more than one type for a fund. Each type of leverage has characteristics that make it a good fit for specific products and market conditions.

Regulatory leverage changes the fund’s capital structure by issuing preferred stock and/or debt. Both are senior to common stock in terms of priority of claims, meaning that preferred stock dividends and debt interest must be paid before any distributions can be made to common stockholders. The amount of regulatory leverage is limited by the Investment Company Act of 1940 to a maximum of 50% and 33 1/3% of the fund’s total assets for preferred stock and debentures, respectively, at the time of issuance.

Indebtedness usually includes a loan or other debt arrangement with a bank or financial institution to the fund. The Fund may also issue debt obligations in the public or private markets. The cost of debt leverage is considered an interest expense and is reflected as part of the fund’s total expenses. Interest expense can be offset against certain types of fund income, potentially reducing the overall tax liability for ordinary shareholders.

Leverage may be appropriate if the fund’s strategy is expected to experience significant capital appreciation or volatility over time because borrowing is relatively easy to adjust.

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The cost of leverage on preferred stock is basically the dividend rate demanded by the holders of the preferred stock. Historically, dividend rates on CEF Preferred Shares are similar to other short- and medium-term rates and may be fixed or floating. Dividends typically have the same tax treatment as the fund’s underlying portfolio income, which is why preferred shares are often used for municipal bond funds.

Preferred stocks often require ratings from national rating agencies, which can affect dividend rates: stocks with higher credit ratings typically pay lower dividend rates and lower leverage costs.

Certain securities are inherently leveraged; when a fund buys them for its portfolio, they are often referred to as portfolio leverage. Examples include reverse float

Leverage Strategies For Maximizing Profits In Boston's Forex Market

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