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The information and opinions in this web-site were prepared by ASTAKHOVA &PARTNERS (Limited) or one of its affiliates (collectively "A&P"). Though the information herein is believed to be reliable and has been obtained from public sources believed to be reliable, A&P makes no representation as to its accuracy or completeness.

The web-site does not contain a record of trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. A&P accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The web-site does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. 

It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence which requires our employees to act in our clients’ best interests and to disregard any conflicts of interests in providing our services. Furthermore, A&P does not seek to disclose the relevant information to any issuer discussed prior to dissemination. 

If you use the services in connection with a purchase or sale of a security that is discussed in this web-site, or is included or discussed in another communication (oral or written) from a A&P, A&P is not liable to act as principal for its own account or as agent for another person.

A&P may not consider this web-site in deciding to trade, in a manner inconsistent with the views taken in this web-site. Others within A&P may take views that are inconsistent with those taken in this web-site. Recommendations contained in one type of communication may differ from recommendations contained in others, whether as a result of differing time horizons, outlooks, methodologies or otherwise. A&P and/or its affiliates may also be holding debt or equity securities of the issuers it writes on.

Subscriptions to Vendors are paid based on the profitability of ASTAKHOVA &PARTNERS (Limited) and its affiliates.

Opinions, estimates and projections constitute the current judgment of the author as of the date of this web-site. They do not necessarily reflect the opinions of A&P and are subject to change without notice. A&P sometimes have shorter-term trade ideas that are consistent or inconsistent with A&P's existing longer term ratings.

A&P has no obligation to update, modify or amend this web-site or to otherwise notify a recipient thereof if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate. Coverage and the frequency of changes in market conditions and in both general and company specific economic prospects makes it difficult to update research at defined intervals. Updates are at the sole discretion of the coverage concerned and as such the majority of web-sites are published at irregular intervals. All text is provided for informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. Target prices are inherently imprecise and a product of the independent analyst’s judgment. The financial instruments discussed in this web-site may not be suitable for all investors and investors must make their own informed investment decisions. Prices and availability of financial instruments are subject to change without notice and investment transactions can lead to losses as a result of price fluctuations and other factors. If a financial instrument is denominated in a currency other than an investor's currency, a change in exchange rates may adversely affect the investment. Past performance is not necessarily indicative of future results. Unless otherwise indicated, prices are current as of the end of the previous trading session, and are sourced from local exchanges via Bloomberg, Reuters and other Vendors. Data is sourced from A&P, subject companies and other parties.

Details regarding our organizational arrangements and information barriers we have to prevent and avoid conflicts of interest with respect to our web-site is available on our website under Disclaimer found on this Legal Tab.

Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that promise to pay fixed or variable interest rates. For an investor who is long fixed rate instruments (thus receiving these cash flows), increases in interest rates naturally lift the discount loss. The longer the maturity of a certain cash flow and the higher the move in the discount factor, the higher will be the loss. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most common adverse macroeconomic shocks to receivers. But counterparty exposure, issuer creditworthiness, client segmentation, regulation (including changes in assets holding limits for different types of investors), changes in tax policies, currency convertibility (which may constrain currency conversion, repatriation of profits and/or the liquidation of positions), and settlement issues related to local clearing houses are also important risk factors to be considered. The sensitivity of fixed income instruments to macroeconomic shocks may be mitigated by indexing the contracted cash flows to inflation, to FX depreciation, or to specified interest rates – these are common in emerging markets. It is important to note that the index fixings may - by construction - lag or mis-measure the actual move in the underlying variables they are intended to track. The choice of the proper fixing (or metric) is particularly important in swaps markets, where floating coupon rates (i.e., coupons indexed to a typically short-dated interest rate reference index) are exchanged for fixed coupons. It is also important to acknowledge that funding in a currency that differs from the currency in which coupons are denominated carries FX risk. Options on swaps (“swaptions”) also bear the risks typical to options in addition to the risks related to rates movements.

Derivative transactions involve numerous risks including, among others, market, counterparty default and illiquidity risk.

The appropriateness or otherwise of these products for use by investors is dependent on the investors' own circumstances including their tax position, their regulatory environment and the nature of their other assets and liabilities, and as such, investors should take expert legal and financial advice before entering into any transaction similar to or inspired by the contents of this publication. The risk of loss in futures trading and options, foreign or domestic, can be substantial. As a result of the high degree of leverage obtainable in futures and options trading, losses may be incurred that are greater than the amount of funds initially deposited. Trading in options involves risk and is not suitable for all investors.

Participants in foreign exchange transactions may incur risks arising from several factors, including the following:

  • exchange rates can be volatile and are subject to large fluctuations;
  • the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and changes in interest rates; and
  • currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities such as ADRs, whose values are affected by the currency of an underlying security, effectively assume currency risk.

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