Papers on "The Split Capital Investment Trust Crisis" and similar term paper topics

Paper #045828 :: The Split Capital Investment Trust Crisis
Buy and instantly download this paper now

An analysis of the reasons for the split capital investment trust crisis 2001 - 2002.

Written in 2003; 1,446 words; 10 sources; APA; $ 47.95

Paper Summary:

This paper examines the structure of the barbell trusts, believed to be one of the main causes of the capital investment trust crisis 2001 - 2002. It looks at how the demand by investors seeking high annual returns in today's almost inflation free economy was successfully being met with barbell investment trusts in a period of buoyant stock markets and how the years 2001 and 2002 saw a fall in stock markets which these barbells could not handle. It shows how these investment trusts were structurally flawed, geared only to a bull market and were seeping in complex risk that very few really understood.

From the Paper:

"Falling markets and the forced selling of shares by banks, in an illiquid market lead to disproportionate share price drops. The asset base of these funds was being eaten away at. Consequently, an even higher yield was now required to meet dividends as there was less capital to work with. Analysts had warned that barbells were offering unrealistic high headline dividend yields. Barbell trusts found they could not meet the headline dividend yields that they had offered. Most barbells hadn't been in operation long enough to build up revenue reserves. As a result, a few barbells failed to meet their dividends and dividends had to be cut. However a dividend cut by one trust did not solely affect that trust."

Tags: barbells bull market investment stock

More papers on "The Split Capital Investment Trust Crisis"

1. Paper #005453 :: Real Estate Investment Trusts ( 765 words; 4 sources; MLA )
2. Paper #023304 :: Russian Financial Crisis 1998: A Self-made Crisis ( 4,694 words; 14 sources; MLA )
3. Paper #034536 :: Energy Crisis Causes Governor Crisis ( 1,150 words; 4 sources; )
4. Paper #004428 :: Effective Crisis Management Techniques ( 1,430 words; 8 sources; )
5. Paper #093792 :: Thailand's Currency Crisis ( 3,091 words; 7 sources; MLA )

About AcaDemon

We have thousands of high-quality term papers, research papers, essays, book reports and dissertations on every topic. At AcaDemon, you can download those term papers to help you write yours! You can be sure that the term paper, essay, book report or research paper, you download are top-quality, competitively priced and high-level work.

Look for more research papers, essays and book reports on The Split Capital Investment Trust Crisis

This Free Term Paper Abstract is a part of our Term Paper Library. Here you can purchase research papers, examples of essays, academic dissertations, articles, notes, analytical papers, book reports, stories and poems. We have thousands of persuasive, point-of-view, narrative, critical, compare and contrast and other types of essays in our Library. You can also find here Term papers on "The Split Capital Investment Trust Crisis", Essays on "The Split Capital Investment Trust Crisis", Research papers on "The Split Capital Investment Trust Crisis", Student papers on "The Split Capital Investment Trust Crisis", Book reports on "The Split Capital Investment Trust Crisis", Dissertation on "The Split Capital Investment Trust Crisis", Thesis on "The Split Capital Investment Trust Crisis", Summary of paper on "The Split Capital Investment Trust Crisis", Articles written on "The Split Capital Investment Trust Crisis".