Brazil used to have a fixed exchange regime regarding its currency (Before the year 1999). However, Brazil moved to adopt a free float exchange rate regime as from January 1999.
Discuss the motives of Brazil’s move and its implications on the country’s economy after the change (60%). 600 words.
What strategy should you employ in order to manage the exchange rate exposure resulting from the change in the currency regime? (40%) 400 words.
The EMMA website and search function can be accessed here http://emma.msrb.org/.”
Additional readings (not required, but recommended by the case study’s author)
Financial Industry Regulatory Authority (FINRA) (2016), Bond Basis: Yields That Matter More. Retrieved from http://www.finra.org/investors/bond-yield-and-return
Securities and Exchange Commission (SEC), General Information on the Regulation of Investment Advisers. Retrieved from https://www.sec.gov/divisions/investment/iaregulation/memoia.htm
Zweig, J (2015, Oct. 30), “How Muni Bonds ‘Yield’ 4% in a 2% World”, The Wall Street Journal. Retrieved from http://ezproxy.umgc.edu/login?url=https://www-proquest-com.ezproxy.umgc.edu/newspapers/intelligent-investor-how-muni-bonds-yield-4-2/docview/1728350413/se-2?accountid=14580 Second, answer the questions. In your initial response to the topic you have to answer all questions:
Examine the brokerage statement contained in the case. How would the stated “estimated yield” compare to the yield to maturity for an investor who purchased the bonds on the statement date at current market prices?
Are you concerned by the ethical behavior presented in the case? Describe the dilemma and explain what you would do. Justify your response.
Describe the Company and the Industry in some detail, including SASB’s materiality map for the industry, the company’s business model, product-competition, future outlooks, and strategy.
Describe how Sustainability can influence these aspects.
Summarize the key takeaways from the company’s Sustainability Report.
Shivram Rajgopal’s Forbes Articles are a good reference and guide:
Compare the Sustainability Report to the Annual Report. Does the Annual Report list any ESG factors in its Risk assessment?
Report in detail the company’s ESG scores by Sustainalytics and MSCI. How do these reports compare to each other? What are the strengths and weaknesses of the companies you selected?
Answer the following questions. In your initial response to the topic you have to answer all questions:
If all transactions were made on paper, how could a bank store all of its paper records? When might they decide to destroy these records
There were social consequences of mass banking, including introducing the public to interest rates on deposits and loans.
How might this understanding of interest rates have affected how U.S. consumers behaved with their money?