Then again, an investor who can't take risk shouldn't be in the stock market in the first place, Mr. Figelman says.
Any money manager who isn't at least market weighted in energy runs the risk of underperforming.
If they don't, they risk having their house on the market for many months with little buyer interest.
The move is aimed at creating a local alternative to the U.S. and European reinsurance market so that refineries won't have to look overseas to hedge their insurance risk.
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Merck finally withdrew the arthritis drug from the market and then was deluged with lawsuits claiming the label didn't warn doctors of the higher heart risk.
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Now EDF would argue that it is not being greedy, but it can't put its own shareholders at risk at a price - that IRR again - that doesn't properly capture market evaluations of the proper reward for this initial ground-breaking project.
" When asked about the current market conditions, he responded "more and more Fed officials are proposing QE so the market interprets and prices in the risk of this, and this has its ramifications, you can't untangle all of this, even the equity rally.
Half the risk managers want market risk calculations for new deals in under 10 seconds, but only 20 percent can accomplish tha, t while 40 percent can only run new deal calculations overnight.
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But the Fed just felt like they couldn't take the risk of having Bear Stearns, which has hooks in so many corners of the financial market, not just go bankrupt but go bankrupt so quickly.
And, in addition to the high interest rates that reflect the extra risk they are assuming, investors also get a security that generally isn't correlated to other market moves--the ideal investment for hedge fund managers.
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