So this is a little confusing. There seems to be a clear distinction between Single Concentrated tools vs Single Concentrated strategies.
Tools include outright sale, monetization, and hedging
Strategy include monetization, hedging, and yield enhancement
Is this just something I have to memorize or is there a ryhm to all this madness?
Isn’t monetization and yield enhancement same thing or at least very similar?
Strategy should include:
Each strategy has its own tools to reach certain goal and which of those might be used depends on client’s situation and requirements.
No tools is sale, monetization, and hedging. I wish I could put up clips from the text but it’s written there.
Tools = sale, monetization, hedge
Strategy = monetization, hedge, yield enhancement
I don’t think monetization and yield enhancment is similiar at all. Monetization requires you to hedge your current position (like a protective put) from downside risk. Whereas yield enhancement is simply looking for premium $ inflow (covered call) so no hedging is required here.
My government had pubic tender to monetize public highways. Due to your post above, could you explain me how to hedge a highway with protective put? Otherwise, Goldman Sachs was chosen for advisory regarding this monetization.