Food, People Will Die - 1172 Words

Without food, people will die. Either they do not have the means to buy food or they live in a place where food and vegetation are scarce and not readily available to the public. In any case, food remains a necessity all living creatures must have. Thanks to modern technology and advancements in all fields of agricultural business (agri-business), the availability of food has increased tremendously. Modern farmers put in the same amount of work and effort for twice the reward. Wendell Berry, a man who grew up during the transition of old farming style and new farming style, noticed the transition from mules to tractors and the efficiency that came with the switch. Berry wrote an article titled â€Å"Renewing Husbandry†; in his article, Berry†¦show more content†¦Those people who live in these conditions can have better diets and live healthier because of agri-business. The transformation from traditional farming to agri-business became rapidly accepted by all types of farmers because of the mass benefits agri-business provides. Berry noticed this transformation by stating, â€Å"This transformation occurred with astonishing speed because, by the measures it set for itself, it was wonderfully successful. It ‘saved labor’† (Berry, 2005, para. 4). This transformation increased the speed of farms. This means the increased speed also decreased the work effort; which allows farmers to do twice as much work without increasing the effort. The transition from traditional farming to agri-business has increased the production load to where agri-business can support the needs of the world. Agri-business fulfills the needs of the world. Farmers can mass-produce their products in a timely manner, granting them the ability to provide food for the world. With every year, agri-business grows to keep up with the demand. Berry stated; â€Å"[T]he tractor would stay and the mules would go. Year after year, agriculture would be adopted more and more to the technology and the processes of industry and to the rule of industrial economics† (Berry, 2005, para. 4). The world constantly changes and adapts. Agri-business changes and adapts to the changes of the world because the main goal of agri-business is to provide food for the world for people toShow MoreRelatedWhat Can We Do About World Poverty? Essay510 Words   |  3 PagesPoverty affects 80% of people in the world. That means over three million people live on less than $2.50 a day. The question today now rises what we can do as a county and as individuals to help. Poverty is an important issue to discuss and know more about for many reasons. More than 48 million Americans live in poverty and 15.9 million of those are children. More than one for every seven people currently lives in poverty all across the United States. A full time working parent working for minimumRead MoreFamine Essay1435 Words   |  6 PagesFamine Famine can be defined as a temporary failure of food production or distribution systems in a particular region that leads to increased mortality due to starvation and diseases that result from lack of food. Famine is a very serious crisis that must be solved because famine leads to many hunger-related deaths worldwide. â€Å"In 1996 about 849 million people lived in famine, about 35,000 people die each day. A majority were children†. (Clark 148) Read MoreIn general, more than 800 million people go to bed hungry each day. Many people all around the800 Words   |  4 Pagesmillion people go to bed hungry each day. Many people all around the world do not have enough food to eat. If more is not done to prevent world hunger, the population will rapidly decrease. More needs to be done to prevent world hunger by farmers increasing crop production, donating to programs that help the starving, and rationing food equally. If these basic needs can be attained many lives will be saved. Background Information To begin with, millions of people do not have enough food to eatRead MoreShould Animals Be Treated Humanely?898 Words   |  4 Pagesconvinced that animals should have rights because of the cruel tests with cosmetics, others maintain that we should be aloud to do these tests on animals because some tests help people find cures and treatments for diseases. I agree that animals should be treated fairly, a point that needs emphasizing since so many people still believe that animals should not have rights just because they aren t humans. Animal testing can be hard to argue. Most tests leave the animals injured and scared. Other testsRead MoreFood Adulteration645 Words   |  3 PagesFOOD adulteration is the process of adding chemical substances with foods, which should not be contained within food and beverages. Chemical substances or simply adulterants may be internationally added to substances to reduce manufacturing costs, or for some deceptive or malicious purpose. When profit in business is more important than morality, then it is possible to add the poisoning contents to the foods and beverages. A limited number of people die without foods but large population have beenRead MoreSonnet XX Of The Fatal Interview By Edna St. Vincent Millay1112 Words   |  5 Pagesprovide health, shelter, and food yet it is paramount to the point that it can lead to death. In â€Å"Sonnet XXX of the Fatal Interview†, by Edna St. Vincent Millay, the poet tells her readers about her experience of how love is not a necessity in life. Millay says that even though love does not fulfill a physical need such as thirst or hunger yet it is worth something more. Overall, love is more paramount than anything for Millay does not give away love nor it is for shelter, food, or peace. In â€Å"Sonnet XXXRead More Causes and Effects of Homelessness Essay829 Words   |  4 Pagesevery society suffers from. There are many things that cause people to become homeless, such as unemployment, relationship problems, and being evicted from ones domicile either by a landlord, friend or even a family member. However, with every cause there must be an effect. Some of the effects of one becoming homeless, besides the obvious change of lifestyle, are various health problems which often times may lead to death. Many people find themselves in a predicament when they are living withRead MoreA Study On A Drop Essay1378 Words   |  6 Pagesare as following: 1. Domestic- this is one of the main uses of water. Such as drinking water, washing clothes, dishes, cars, bathing, preparing your food, brushing your teeth, flushing the toilet, etc. It is estimated that 15% of worldwide water use is for household purposes. 2. Agricultural- water is used for the growing of our foods. Much of our fresh water is also used outdoors for watering lawns, flower beds, and vegetable gardens. The agricultural sector is by far the biggest userRead MoreWho Is More Happy People Living in the City or People Living in the Jungle899 Words   |  4 Pagesâ€Å"previous findings have shown that the risk for anxiety disorder is 21% higher than people for the city who also have 39% increased mood disorder, pollution ,toxins ,overcrowded areas and noise could contribute †he said. Nevertheless, part studies have shown that access to green space soothes frayed nerves and improves well-being .Living in the city and in the jungle have its advantages and disadvantages. Most people live in the city ,life in the city is more comfortable there is always plenty toRead MoreProblems Face by Earth948 Words   |  4 Pageswhen the earth heats up (the temperature rises). It happens when greenhouse gases (carbon dioxide, water vapor, nitrous oxide, and methane) trap heat and light from the sun in the earth’s atmosphere, which increases the temperature. This hurts many people, animals, and plants. The greenhouse effect is when the temperature rises because the sun’s heat and light is trapped in the earth’s atmosphere. This is like when heat is trapped in a car. On a very hot day, the car gets hotter when it

Background Information Of The Reformation And Definition

Background Information of the Reformation and Definition The Protestant Reformation, known simply as â€Å"The Reformation,† began in 1517 with Martin Luther’s publication of the 95 Theses. Major players in this pivotal point in European history included Christian humanists such as Desiderius Erasmus, the Kings of France and England, the Holy Roman Emperors and at the center of it all; the Catholic Church. Luther’s publication of the 95 Theses, its’ rapid dissemination due to the technological advance of the printing press (1440), and a European population of lay Christians, Royalty, and Clergy alike primed to take on the excess and singular religious hold of the Catholic Church, created a firestorm of change that swept throughout Europe and significantly changed the practices of the Catholic Church. According to a current publication of PBS.org, Martin Luther â€Å"plunged a knife into the heart of an empire that had ruled for a thousand years, and set in motion a train of revolution, war and conflict that would reshape Western civilization, and lift it out of the Dark Ages.† Desiderius Erasmus (1466-1563) was a Dutch born scholar who actively supported the Northern Renaissance philosophy of Christian Humanism. Christian Humanism â€Å"emphasized human dignity, beauty, and potential, and reacted against the religious authoritarianism of the Catholic Church† by using â€Å"the principles of classical learning to focus on biblical studies, theology, and the importance of individualShow MoreRelatedAmnesty International : For Survivors Of Wartime Rape1728 Words   |  7 PagesThis article displays policies that have been enacted, that have failed, and that have not yet come through for the rape victims of the region. 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Competitive Landscape in Commercial Real Estate Free Essays

Home  » Property Types  » Retail  » Clash of the Titans: Regional Mall REITs Fight for Limited Outlet Development Opportunities Clash of the Titans: Regional Mall REITs Fight for Limited Outlet Development Opportunities May 9, 2012 12:54 PM, By Elaine Misonzhnik, Senior Associate Editor In the fall of 2010 executives with Taubman Centers Inc. , a Bloomfield Hills, Mich. -based regional mall REIT, began talking about the REIT’s new avenue for growth: outlet centers. We will write a custom essay sample on Competitive Landscape in Commercial Real Estate or any similar topic only for you Order Now Article Tools ? Latest News More Latest News Taubman had recently completed the conversion of its Great Lakes Crossing property in Auburn Hills, Mich. , a 1. 35-million-sq. -ft. enclosed regional mall, into Great Lakes Crossing Outlets. Taubman was able to sign up many tenants that were not present elsewhere in Michigan, including Bass Pro Shops Outdoor World, Disney Store Outlet and Rainforest Cafe. Great Lakes Crossing Outlets was attracting both local shoppers and Canadians from across the Detroit River. As a result, the center’s sales per sq. ft. umbers rose significantly, company officials said during earnings calls. The success in Auburn Hills helped convince Taubman’s management to capitalize on additional outlet center opportunities. Besides, in a market saturated with fortress malls and lifestyle centers, outlet centers represented one of the last opportunities for ground-up construction. Robert S. Taubman, the REIT’s chairman, president and CEO, laid out a goal of developing from five to 10 outlet centers in the span of a decade. Among the first such undertakings Taubman pursued was a site in Manvel, Texas, near Houston. The site seemed a good fit for Taubman’s target outlet center sales level of at least $400 per sq. ft. The median household income in Manvel is $65,864 a year, more than $15,000 higher than the median household income for the state as a whole. In addition, the town’s proximity to Houston would give Taubman access to 2 million potential shoppers. Taubman’s Texas ambitions, however, did not pan out. Both Tanger Factory Outlet Centers, a Greensboro, N. C. -based REIT that specializes in outlet center development, and Simon Property Group, the largest retail landlord in the country in both the regional mall and outlet center arenas, had laid claims to outlet center development sites in nearby Texas City, just 22 miles away. According to brokers familiar with the market, the greater Houston area could not support two, let alone three, outlet centers. In June 2011, Simon and Tanger took a decisive step to win the market by announcing that they would partner to build a 350,000-sq. -ft. joint development in Texas City under Tanger’s brand name. It marked the first joint venture development partnership in Tanger’s history. Ultimately, the two firms decided to work together on one large outlet center rather than spend money fighting each other, says Michael Rodenas, principal with Rodenas Consulting, a national consulting firm that specializes in shopping centers and malls. As a result, Taubman quietly retreated from the market. In July 2011, while discussing the company’s earnings for the second quarter, Robert Taubman admitted to analysts that outlets constitute â€Å"a very competitive space. It’s a very competitive world out there in development generally. † He reiterated the company’s commitment to investing in outlet centers both in U. S. and in Asia, but refused to discuss the Texas project. The Houston saga wasn’t the only time Taubman and Simon came to loggerheads in the outlet space. In early April, Simon and Taubman each issued press releases about competing outlet center projects in Chesterfield, Mo. , another market where trade area demographics seem to dictate that only one outlet development can succeed. On Apr. 3, Simon revealed that Saks Fifth Avenue OFF 5th agreed to anchor its St. Louis Premium Outlets, an outlet center slated to contain at least 350,000 sq. ft. of space. (St. Louis Premium Outlets is a product of a joint venture between Simon, Woodmont Outlets and EWB Development LLC, all experienced outlet center developers. ) Two days later, Taubman announced it broke ground for Taubman Prestige Outlets Chesterfield, a 450,000-sq. -ft. center. Taubman’s press release noted that it had firm commitments from a number of tenants, but did not identify any retailers by name. It is likely that only one of those two centers will get built in Chesterfield. â€Å"We’ve said publicly, I think, Simon has said publicly that there is only going to be one project built in St. Louis,† Robert Taubman said during the firm’s first quarter earnings call. â€Å"We are way ahead, on a much better site with much better access, much better visibility. †¦ So to us it’s very clear as to which project is going to be built. † Most industry sources, however, are putting their money on Simon because of the firm’s size, its existing network of relationships in the outlet center industry and the fact that it has already bagged a major tenant. The large regional mall players, including Simon, Taubman, Macerich Co. CBL Associates Properties and others, have all made overtures to enter the outlet space. But with limited opportunities for development and an existing group of experienced landlords already competing there, these battles—competing press releases, wars of words and unconventional partnerships— are likely to continue to play out repeatedly throughout the country. CBL Associates recently invested in The Outlet Shoppes in El Paso (Texas). Last spring, both Simon and Tanger announced outlet center projects in the town of Halton Hills, a suburb of Toronto. Tanger has since moved its project further away and will build it as an outlet addition to Heartland Town Centre, one of Canada’s largest power centers. Simon, meanwhile, started construction on its original site in Halton Hills in April. And in the Chicago area, Macerich and AWE Talisman have announced plans to build a $200 million, 528,000-sq. -ft. outlet center in Rosemont while Craig Realty Group, a privately held outlet center developer, has ambitions to develop Chicagoland Outlets at Country Club Hills, a 408,500-sq. -ft. project. Simon Property Group declined to comment for this article. Tanger, Taubman, Macerich and Craig Realty Group, meanwhile, did not respond to calls for comments. â€Å"The problem is—as we saw when developers started to roll out lifestyle centers—that everyone goes after the same markets,† says Jeff Green, president of Jeff Green Partners, a Phoenix-based consulting firm. â€Å"And many times the newer folks to the outlet industry are going to find that it’s a much harder industry to get into when there are relationships that have been in place for so many years. † In certain isolated instances, uch as the one near Houston, two big developers might form joint ventures because one of them holds a better site while the other wields more power with retailers. Such examples, however, will be few and far between, according to Richard Hauer, managing director of business restructuring services at BDO, a New York City-based consulting firm. â€Å"Let me put it this way: Neither Simon nor Taubman is going to build a second-rate outlet mall,† he says. â€Å"So if the first guy can get Coach and Polo and Saks and a few of those names that every outlet mall really wants, you’ll see the other guy back down. Mass appeal The reasons the outlet sector has suddenly become overcrowded are easy to trace. During the downturn, outlet center sales rose while mall sales fell or remained flat because shoppers were suddenly attracted to outlets’ value proposition. What’s more, as these centers moved closer to urban areas and proved that they can work in close proximity to regional malls, the number of markets that could support new projects increased. With limited opportunity for growth elsewhere, regional mall REITs began to focus on the outlet sector. Real estate owners that want to gain market share in a new property segment typically have two avenues for growth: either through acquisition of multiple assets or another operating company or though development. But when Simon bought Prime Outlets Inc. in 2010 it snapped up the last big privately-held outlet center operator in the market. Today, â€Å"no private guy controls 20 or 30 centers that could be sold,† says Gerard Mason, executive managing director with Savills LLC. What’s more, there is a wide spread on yields between development and investment. For instance, CBL Associates, a Chattanooga, Tenn. -based REIT, recently invested more than $108 million to provide financing for two outlet centers developed by Horizon Group Properties, a Rosemont, Ill. -based outlet center developer. (CBL has also partnered with Horizon on groundup projects in Oklahoma City and Woodstock, Ga. ) But CBL CEO Stephen Lebovitz admits that development projects offer double-digit returns while investing in existing centers brings returns in the 8 percent range. I would expect that our growth will be mainly through new development,† he says. At the same time, Lebovitz notes that the number of markets in the U. S. that would meet CBL’s development criteria, including a trade area of approximately a million people, a sizeable tourist base and lack of existing competition, is limited. One high-ranking industry source says that for developers targeting outlet center sales on par with Simon’s levels, which average about $550 per sq. ft. , there are maybe 10 untapped markets left that fit the necessary trade area characteristics. For developers targeting Tanger’s sales levels, which currently average $371 per sq. ft. , there are about 40 untapped markets. â€Å"But there aren’t 100,† the anonymous source notes. By the end of the 2012, there will be 187 outlet centers containing 71 million sq. ft. , according to Value Retail News, a publication that covers the outlet industry. Linda Humphers, editor-in-chief of Value Retail News, estimates that in the long term, the country may be able to support another 250 centers, but that would include conversions. Occasionally, a developer will be able to find a site in an offbeat location that nobody else has thought about, says Gerard Mason. But for the most part, all the REITs are looking at the same markets, and in many cases, at the same piece of land. â€Å"There is clearly room for growth in the sector—every major metro area can certainly support outlet retail,† says Michael P. Glimcher, CEO of Glimcher Realty Trust, a Columbus, Ohiobased regional mall REIT that also owns outlet centers in Elizabeth, N. J. and Auburn, Wash. I just think the reality is there are a lot of people in that category and only a small percentage of what’s being announced will actually get built,† Glimcher says. Bloodless war When it comes to handling competition on new developments the big retail REITs have acquired a reputation for being ruthless, employing tactics such as funding community opposition groups to derail each others’ projects, says Patrick Fox, president of Saint Consulting Group, a firm that specializes in zoning and land-use battles. These are mature markets, they are largely over-built and the battle for market share is tremendous,† he notes. But unlike large regional malls that tend to be located in major urban areas, outlet centers don’t normally inspire the same kind of opposition from local residents, according to James Schutter, senior managing director with Newmark Knight Frank Retail, a retail real estate services firm. In fact, many communities want to see outlet centers built because of the tremendous amount of sales tax revenue they bring in. The real battle in outlets’ case is for tenant commitments. Although the outlet industry doesn’t have anchors in the same sense that the regional mall industry does, there are certain key stores that are necessary to attract shoppers and that the rest of outlet retailers follow, notes Hauer. These include Saks Fifth Avenue OFF 5th, Coach and Polo, as well as Neiman Marcus Last Call and Nordstrom Rack. About a decade ago, Hauer tried to develop an outlet center near Syracuse, N. Y. When he started negotiating with potential tenants the answer was â€Å"if you can get Polo, we’ll sign. Otherwise, we are not interested. † When there are two developers competing to build a center in a market that can support only one project it becomes a race to be the first to announce leases with major tenants. The developers try to convince expanding retailers that their center is the one that’s going to happen by putting out announcements about land permits and ground-breakings. Ultimately, however, it’s the line-up of tenants that determines whose center gets built. â€Å"Developers announce that they will put together a mall [all the time], they don’t always make it happen,† says Schutter. If you’ve got this tenant and this tenant and this tenant coming, the other guys in the marketplace say, ‘Let’s go into this project. ’† â€Å"A ground-breaking is not as strong as being able to announce a strong anchor tenant,† Fox adds. So how do those key retailers decide who to go with when the choice is between Simon and Tanger, or Simon and Taubman or Mac erich and Craig Realty Group? After Taubman converted its Great Lakes Crossing project into an outlet center, sales rose significantly. Having the best site certainly makes a difference, which is why Simon may be willing to partner with Tanger if Tanger has secured a better location, according to Michael Rodenas. When the projects are in the same trade area, the choice might come down to seemingly small differences like which side of the highway the center will be located on or which zip codes in a given area are missing from the retailer’s customer base. But in the outlet industry, having existing relationships with a potential landlord is also very important, according to Hauer, Green, Lebovitz and others. And in this, Simon, which controls the largest mall portfolio and the largest outlet center portfolio in the country, has a tremendous advantage. That might not come into play as much in the Simon/Tanger relationship because the two REITs specialize in slightly different projects, but it will likely loom large in any battle between Simon and other regional mall REITs. â€Å"If you [as a tenant] get Simon angry with you on the outlet side, they can be angry with you on the traditional retail side also,† says Green. Let’s just say that in that case the developer has a large hammer, a larger hammer than any mall-only developer would have. † That’s why most retail industry insiders feel that while Taubman and the other regional mall REITs will eventually be able to build a handful of outlet centers, they will not be able to break into the business in the big way they had imagined. â€Å"The outlet mall industry is kind of a closed world,â €  says Schutter. Sidebar: Eastern Promises While U. S. retail REIT executives try to build up their outlet portfolios at home, most of them realize that growth opportunities here are limited. So in recent months they’ve been announcing outlet center projects elsewhere in the world, including Canada, Brazil, Japan, China, South Korea and Malaysia. In April, Simon signed a deal with BR Malls Participacoes S. A. to develop outlet centers in Brazil, with the first project scheduled to be built in Sao Paulo by 2013 and started construction on Phase I of Shisui Premium Outlets, a 234,000-sq. -ft. outlet center in Shisui, Japan. Both Simon and Tanger have been working on outlet centers in Canada, including Simon’s 500,000-sq. ft. Toronto Premium Outlets in Halton Hills and Tanger’s 312,000-sq. -ft. outlet addition to Heartland Town Centre in Mississauga. And Taubman executives have told analysts they are looking to build outlet centers in Asia, where Taubman already has offices in Hong Kong and Seoul, South Korea. â€Å"In the U. S. , you are not going to see outlet centers double in number,† says Gerard Mason, executive managing director with Savills LLC, a global real estate services firm. â€Å"That’s why Simon is in Brazil and China. In Brazil they might be able to do 15 outlet centers because their middle class is just emerging and they need shopping centers. † —E. M. Sidebar: Mini-Malls With the increase in outlet centers’ popularity, the concept has evolved to represent something different than a small collection of factory stores in the middle of nowhere. In the 1980s and 1990s, the rule of thumb was that an outlet center had to be located at least 70 miles away from the closest phone line, jokes one broker. Today, if a shopper goes to Central New Jersey, â€Å"you have the Freehold Raceway Mall [a 1. -million-sq. -ft. superregional center] and then 10 to 15 minutes away, there is an outlet mall,† according to Richard Hauer. Today’s outlet centers have grown larger, sometimes containing up to 450,000 sq. ft. or 500,000 sq. ft. of space, whereas the outlet centers of yesterday tended to average 150,000 sq. ft. The tenant line-up has changed from manufacturers to big retail cha ins, many of which, including Nordstrom, Neiman Marcus, Saks Fifth Avenue, Bloomingdales, Gap, J. Crew and Aeropostale, have established off-price and outlet divisions. Plus, outlet centers now feature mall-like amenities, such as food courts, restaurants and movie theaters, because people are staying on the properties longer than they used to, notes Michael Rodenas. And when CBL Associates Properties and Horizon Group Properties were working on the plan for The Outlet Shoppes at Oklahoma City, a 350,000-sq. -ft. center that opened last summer, CBL marked land around the property for the addition of restaurants and hotel facilities. â€Å"We feel it adds critical mass,† says Stephen Lebovitz. —E. M. How to cite Competitive Landscape in Commercial Real Estate, Papers

Money Market Trading Strategies free essay sample

Money market trading strategies Looking at the prediction made, i. e. the money market interest rate will increase for the next six months, the team has come out with a few strategies to be undertaken in order to maximise the bank’s profit. The first instrument will be of the cash products, including overnight cash, 7-day cash and loan, and secondly, the discount security which consists commercial bills. 1. Overnight 7-day Cash The bank can offer to take overnight deposits or make overnight loans to big corporations, making use of the increasing interest rate for the next six months. High interest rate will attract corporations who have some amount of money which is unused to be parked somewhere to at least generate some profit, to invest the deposit in the bank. This will give them some yield of say, 0. 0178% per day (6. 5% per annum). Therefore, a deposit of $5 million will give them a return of ,780. We will write a custom essay sample on Money Market Trading Strategies or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Likewise, corporations who need an overnight loan will also go to the bank for some funds. The bank’s strategy is to know which price other banks are offering to the client. The two prices quoted by a bank will determine the lending and investing rate of clients. Therefore, if the common quote is 6. 50-65, our bank can narrow down spread, with quote of say 6. 50-62. Though it gives lesser profit, it attracts more clients who are savvy with the market condition. 7-day cash gives the same yield. The only difference is the period of the deposit and loan, which is a fixed period of 7 days. 2. Loan (fully-drawn advance) There are two types of short-term loan; committed loans and uncommitted loans. The bank can concentrate more on the committed loans, as it has commitment fee payable. An increase in interest rate will then increase the profit of the bank issuing loan to corporations. . Commercial Bills (Bills of exchange) The bank can issue commercial bills; or rather bank accepted bills (BAB), where the bank acts as the acceptor of the bill and charges a fee for acceptance. BABs will be more attractive than normal commercial bills, as banks have high credit-worthiness. Therefore, it is a good step to promote on the BAB issuance with the prediction of the increasing interest rates, as PV = FV__ (1 + yt) An increase in y (yield to maturity, or return) will cause the denominator in the fraction to increase, and PV to decrease, as PV is inversely related to the fraction. When PV decreases, more lender (discounter) will be attracted to buy the bill. Recommendation After all the analysis, it is recommended that the bank promote on cash product like overnight cash, 7-day cash and loans, and discount security like commercial bills to maximise its profits. Risk Obstacles Associated From the Strategies When endorsing cash products such as overnight cash, 7-day cash, loans and discount securities, there are risks that a bank may face. Competition One of the risks related would be competition. Competition from other banks will put pressure on a bank to bid lower while forcing higher offer rates, this in turn will minimize the market spread. This mainly involves overnight cash and 7-day cash products. Price Risk There is also price risk. This risk is where the interest rate movement will reduce the value of securities held by a trader or dealer. A bank will be affected by market risk if it sets a competitive price should an unexpected increase in market yield occur, as this will drop the value of a bank’s position. Basis Risk Another risk is the basis risk. This is the risk where the hedge is insufficient to cover the movement of the value in interest rates. Market interest rates might increase instead of decrease and this will reduce a bank’s profit. Information asymmetry Other risks may include information asymmetry. This is a situation where dealers may anticipate and forecast yield movement better because of information data that they can access but which the bank does not have. Bank-Accepted Bills: Acceptor’s Risk The primary liability to exchange the bill at maturity falls upon the acceptor; therefore, the bank has the ultimate responsibility to honour the bill at maturity. It carries the risk that the drawer may not comply with the associated financial agreement to pay the bank the face value of the bill at maturity. Difficulty to Cancel or Alter Once a forward cash contract is entered, its commitment may be difficult to cancel or alter. This limits the bank to retreat from the contract if the terms appear unfavorable in the future. Conclusion The report shows that interest rates have been increasing since January 2005 due to the rise in the economic growth rate in Australia. According to the analysis the market interest rate is expected to increase in the next 6 months due to various factors such as economic growth, inflation and increase in commodity prices. Based on this prediction, various strategies can be used to hedge interest rate risks and maximize profits of the bank. The bank can make its decisions based on the viability of the strategies considering the possible risks and obstacles that the bank may face for taking a particular profit-driven strategy.