If my undergrad operations research class has any relevance, there is a square root in the optimal solution.

What optimal solution is that?

The problem is that they don't own the train and have no control over it. I mean built a storage house...Ppauper, Botash is the target we want to buy!

Have you seen Options, Futures and Other Derivatives by Hull? Do you understand how the products work?

We have identified an LBO target that is a Mining company producing Salt and Soda ash. However, the target has a market in a foreign country situated 861 km away. The target is doing good and has positive cashflow, however there is still room for growth as the demand is not being met. The only prob...

I agree it's a loan from a lender and has repayments and not coupons. What does the bank use to issue the bonds? The cash-flows of the underlying of the underlying?

Thanks ppauper; In the Fund we setting up we have identified a target and a company doing LBOs is interested in working with us.  LBO company (with cash) -> Our Fund -> Target So in this case LBO company gives us money to invest in the target and we pay back with coupons using the target's cash-flow...

"To Forstmann the junk bond was a drug that enabled the puniest acquisitors to take on the titans of industry, and he held it responsible for twisting the buyout world's priorities until they were unrecognizable. No longer, Forstmann believed, did buyout firms buy companies to work side-by-sid...

This doesn't answer your question and is not directly related but it might be something to keep in mind: https://www.bloomberg.com/news/articles/2017-09-07/how-standard-chartered-lost-400-million-on-risky-diamond-debt We are in a country with the best reputation for Mining and I don't see diamonds ...

Then model is not a problem...I aggregate at two levels: Line of business (& have correlations between Early Stage & Growth Capital) Commodities (& have correlations between Diamond, Coal, Quarries, Salt etc) The VAR is just multiplying correlation matrices with nominal values ...it is w...

Normally when you calculate VAR you would back it with money and hence have capital set aside in-case you lose up to the VAR, not take more risk with it, that's why I feel ppauper has a point, it's just that it's not easy to understand his model solution for now.

The weakest link will be the model you use to estimate your loss distribution, not the allocation details. How are you going to estimate the loss distribution? As a general rule: you typically cannot have higher returns without higher risk when optimizing your portfolio. I want to invest an amount ...

Set your risk limit at whatever level of confidence you choose. Doesn't have to be 95%. Construct some sort of distribution of returns (some people might use scenario analysis to do this). Let's say that your risk limit is X million BWP and you know for the venture capital the most you will lose at...

Hi all…my portfolio is made up of Mining assets split up into VC & PE. VC is exploration projects with some proven reserves (this includes: quarry, gold, diamonds etc) PE is growth capital for companies that need Finance.   The assets is 500Mn cash. Now I want to decide how much to allocate to ...

Botswana Stock Exchange

We are currently setting out to raise funds via a roadshow for an IPO. However the corporate Financier is quite concerned that investors will require to see someone who has already invested. Some investors have declared interest to invest on the CONDITION that they are not the only investors, how d...