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Friday, May 30, 2008
PHOTO AVAILABLE: Investing Green cultivates Energy Alternatives for Investment, reports GKV Capital
Comtex
May 30, 2008 (EWORLDWIRE via Comtex) ----GKV Capital Management ('http://www.gkvcapital.com'), an independent registered investment advisory firm specializing in portfolio management services, today announced that it has published, Investing Green," and is making the report freely available on the company's Web site ('http://www.gkvcapital.com').
The new report is an extensive primer to help investors understand the macro trends in energy, and how they can best position themselves in the current environment of rising commodity costs and global climate change.
The report takes an in-depth look at the current energy economy in the U.S. and examines what practical changes can occur. "Economic growth is dependent on energy consumption," said Greg Vogel, portfolio manager and author of the report. "Conservation and efficiency through technology will not materially reduce our energy consumption." The report goes on to explain that the success of alternatives is dependent upon costs relative to existing fossil fuels. "Alternative energy sources are finally becoming viable as energy costs soar," Vogel continues.
Greg Vogel has been a portfolio manager at GKV Capital since 2002. Prior to GKV he was a managing director at Banc of America Securities in San Francisco. Vogel was named "Best on the Street" by the Wall Street Journal and has significant national media interview experience.
About GKV Capital Management, Co., Inc.
GKV Capital is an independent, California-based firm with offices in Westlake Village and Walnut Creek. GKV Capital delivers innovative and personalized portfolio management services to high net-worth individuals and families. Founded in 1975, GKV has a long successful history of managing assets for its clients. For more information on GKV Capital please call (800) 301-9155, email greg@gkvcapital.com, or visit 'http://www.gkvcapital.com'.
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Source: GKV Capital
Greg Vogel GKV Capital 2950 Buskirk Aave Suite 300 Walnut Creek, CA 94597 PHONE. 925 407-4771 FAX. 925-407-4772 EMAIL: greg@gkvcapital.com http://www.gkvcapital.com
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Welcome to the major leagues of debt. Collateralized debt obligations, almost always referred to as a CDOs, are horrendously
complicated deals that often leave anyone without a MBA wondering what was put into these CDOs.
The first thing to
understand about bonds, (aka debt) is that bonds are often backed by something else. Think about your home mortgage. If you
don't pay your mortgage, the bank can take the house. You end up homeless, and the bank sells the house to pay off the rest
of that mortgage. There is something "backing" that mortgage; something lender can fall back on, if you don't pay your bills
like a good human being. That's called collateral.
CDOs are one flavor of an entire sector of investing called structured
finance, and they are also backed. CDOs, in the simplest concept, are just bonds backed by something else. In most cases,
a CDO is backed by a collection of various types of debt. CDOs can be home mortgages, or other types of debt like credit cards,
auto loans, and personal loans. Most of these types of debt are usually considered a bit more risky and they don't have the
backing that a home loan does. So, if you think it through, you can imagine that CDOs are usually considered a risky investment.
To take a step further, understand that CDOs have multiple flavors within each CDO. These flavors are called tranches. If you've taken French, you might recognize the word, it means "slice" or "portion." Each slice of that CDO you invest in is a little different and carries different amounts of risk.
You could invest in the lowest risk tranche of the CDO, which would
provide you lower risk. But, you don't get a good return on that investment. Or, you can be the heroic adventurer of bonds
and invest in the lowest-grade tranche of the CDO. You'll make an amazing return, but if the economy even looks at you wrong,
you might lose the entire investment.
CDOs aren¿t easy, and are almost always invested in by mutual funds, insurance
companies and hedge funds. As an individual investor, you will probably not come across a CDO you can participate in.
