More institutional investors are implementing investment recovery board policies that contain loss thresholds. When losses exceed pre-set amounts the fund considers material, they trigger consideration of direct action in the US or abroad.
As a result, more institutions are now asking how their losses should best be calculated for comparison purposes. The answer is estimated Inflationary Losses. Understanding why requires an appreciation of the differences between Market Loss, Recognized Loss, and Inflationary Loss.
What you will learn:
- Best practices to calculate your losses for comparison purposes
- Three types of losses: Market Loss, Recognized Loss, and Inflationary Loss
- Estimating Inflationary Loss
