The first advantages of Implementation Shortfall(IS) is:
* links trading to portfolio manager activity.
Why is it an advantage of IS, but not an advantage of VWAP? Thanks. (Notes: not in Schwsr).作者: liangfeng 时间: 2011-7-11 19:29
IS takes into account implicit cost like delay cost and opportunity cost all of which are linked to portfolio manager's activity.
VWAP does not capture these implicit cost.作者: dyga 时间: 2011-7-11 19:29
bell99 Wrote:
-------------------------------------------------------
> IS takes into account implicit cost like delay
> cost and opportunity cost all of which are linked
> to portfolio manager's activity.
>
> VWAP does not capture these implicit cost.
Thanks, bell99. ...I had a hard time to understand the statements of Execution chapter.作者: pennyless 时间: 2011-7-11 19:29
deriv108 Wrote:
-------------------------------------------------------
> thanks, bp.
>
> One of the disadvantage of IS is "imposes an
> unfamiliar evaluation framework on traders".
>
> Simply put, does it means that IS strategy gives
> the portfolio managers more "power" over the
> traders?
