portfolio insurance

portfolio insurance
A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level. Bloomberg Financial Dictionary
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Method that consists in regularly and automatically adjusting the proportion of risky assets ( i.e. those exposed to a market index) and non-risky assets ( cash) in order to provide total or partial protection for the principal invested in a portfolio. NYSE Euronext Glossary

Financial and business terms. 2012.

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  • Portfolio Insurance — Eine Wertsicherungsstrategie, auch Absicherungsstrategie oder Portfolio Insurance genannt, soll den Kapitalanleger mittels spezieller Finanzinstrumente und anderer Maßnahmen gegen ungünstige Entwicklungen auf den Wertpapiermärkten (Marktrisiken)… …   Deutsch Wikipedia

  • portfolio insurance — portfolio protection The use of a financial futures and options market to protect the value of a portfolio of investments. For example, a fund manager may expect the general level of prices to fall on the stock exchange. The manager could protect …   Accounting dictionary

  • portfolio insurance — portfolio protection The use of a financial futures and options market to protect the value of a portfolio of investments. For example, a fund manager may expect the general level of prices to fall on the stock exchange. The manager could protect …   Big dictionary of business and management

  • Portfolio Insurance — 1. A method of hedging a portfolio of stocks against the market risk by short selling stock index futures. 2. Brokerage insurance such as the Securities Investor Protection Corporation (SIPC). 1. This hedging technique is frequently used by… …   Investment dictionary

  • Portfolio insurance — A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy s goal is to ensure that the value of the portfolio does not fall below a certain level. The New York Times Financial Glossary …   Financial and business terms

  • Constant proportion portfolio insurance — (CPPI) is a capital guarantee derivative security that embeds a dynamic trading strategy in order to provide participation to the performance of a certain underlying asset. See also dynamic asset allocation. The intuition behind CPPI was adopted… …   Wikipedia

  • Constant Proportion Portfolio Insurance — Die Constant Proportion Portfolio Insurance (CPPI) ist eine dynamische Portfolio Absicherungsstrategie. Inhaltsverzeichnis 1 Geschichte 2 Grundkonzept 3 Literatur 4 Weblinks …   Deutsch Wikipedia

  • Constant Proportion Portfolio Insurance - CPPI — A method of portfolio insurance in which the investor sets a floor on the dollar value of his or her portfolio, then structures asset allocation around that decision. The two asset classes used in CPPI are a risky asset (usually equities or… …   Investment dictionary

  • portfolio protection — portfolio insurance …   Accounting dictionary

  • Portfolio Selection — ist der Titel einer Veröffentlichung des US amerikanischen Ökonomen Harry M. Markowitz aus dem Jahr 1952 und bezeichnet seither ebenso auch die darin von ihm erstmals entwickelte Theorie zur Portfolio Auswahl. Seine Arbeit war zum Zeitpunkt Ihres …   Deutsch Wikipedia

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