Bucket

Dictionary Says

Definition of 'Bucket'

1. A group of swaps with similar or identical maturities.

2. Any group of securities with a similar level of risk. An investment strategy called the “bucket approach,” developed by Nobel Memorial Prize winner James Tobin, recommends dividing investments into high-risk and low-risk “buckets” and then trying to achieve the highest possible return for each bucket.
Investopedia Says

Investopedia explains 'Bucket'

1. Buckets can be used to assess the sensitivity of a portfolio of swaps to changes in interest rates. Once risk (called “bucket exposure”) has been determined (through a process called “bucket analysis”), the investor may choose to hedge that risk if it is cost-effective to do so. A strategy called immunization can be used to create a perfect hedge against all bucket exposures.

2. Tobin's strategy called for alloting stocks between a "risky bucket" and a "safe bucket". However, other proponents of the bucket strategy use up to five buckets in their variation of this approach.

Related Definitions

Search results for

'Bucket'

  • Dividend Aristocrats And The Shareholder Bucket

    http://stocks.investopedia.com/stock-analysis/2010/Dividend-Aristocrats-And-The-Shareholder-Bucket-SHW-MCD-FDO-CLX-CTAS0223.aspx
    ... Dividend Aristocrats And The Shareholder Bucket. Posted ... development. The money
    for all of this comes from one bucket: The Shareholder Bucket. ...
  • A Sanity-Saving Retirement Stock Portfolio

    http://www.investopedia.com/articles/retirement/09/stock-portfolio-retirement.asp
    ... The Bucket Approach This concept is not new. ... Let's take a closer look at the
    two-bucket solution. The Risk Bucket Bucket one is the "risky bucket". ...
  • Top 4 Affordable Halloween Decor Ideas - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/Top-4-Affordable-Halloween-Decor-Ideas.aspx
    ... Bubbling Cauldron Search your home for a large pot or bucket. ... Drop the dry ice into
    the pot or bucket and add water for an instant, bubbling effect. ...
  • The Real Dividend Aristocrats

    http://stocks.investopedia.com/stock-analysis/2010/The-Real-Dividend-Aristocrats-CTL-SHW-PBI-ED-XOM-CLX0630.aspx
    ... Are you familiar with the shareholder bucket? ... 2/10. Bottom Line I've always believed
    the best companies are those who do a good job with the shareholder bucket. ...
  • The History Of Options Contracts

    http://www.investopedia.com/articles/optioninvestor/10/history-options-futures.asp
    ... Options appear to have made their debut in what were described as "bucket
    shops". The bucket shop in 1920s America was made famous ...
  • The Greatest Investors: Jesse L. Livermore | Investopedia

    http://www.investopedia.com/university/greatest/jesselivermore.asp
    ... Over the next several years, he made money betting against the so-called "bucket
    shops," which didn't handle legitimate trades – customers bet against the ...
  • Terex Reveals Management's Value

    http://stocks.investopedia.com/stock-analysis/2009/Terex-Reveals-Managements-Value-TEX-MTW-CAT-DE1026.aspx
    ... even during prosperity. Terex falls into the latter bucket. ... during prosperity.
    Terex clearly falls into the latter bucket. (For ...
  • Forex: Wading Into The Currency Market

    http://www.investopedia.com/articles/forex/06/FirstStepsFX.asp
    ... getting a busy signal. Bottom line, you want to find someone legitimate
    to trade with and avoid a bucket shop. (For related reading ...
  • Forex: Wading Into The Currency Market

    http://www.investopedia.com/articles/forex/06/firststepsfx.asp
    ... getting a busy signal. Bottom line, you want to find someone legitimate
    to trade with and avoid a bucket shop. (For related reading ...
  • Can AngioDynamics Get Hearts Racing?

    http://stocks.investopedia.com/stock-analysis/2011/Can-AngioDynamics-Get-Hearts-Racing-ANGO-COV-BCR-JNJ-ISRG-ICUI-EW-MMSI1011.aspx
    ... For quite a while now, AngioDynamics' stock has suffered from the fact that core
    earnings growth has been about as exciting as a bucket of warm paste. ...

Related Articles

Partner Links