The Government also managed to support the currency, the real, whose value is linked to the dollar.
Rather, the bonds' value is linked to a specific underlying share, or to an index such as the Nikkei.
Buying derivatives whose value is linked to home mortgage loans will save banks some money, but it won't resolve the underlying difficulties in the mortgage markets.
This chapter highlights the valuation of technology stocks whose ultimate value is linked to the growth of the Internet and the World Wide Web.
In its case, the SEC alleges that Goldman Sachs created and marketed a financial product known as a collateralized debt obligation, often referred to as a CDO, whose value was linked to that of home loans.
Derivatives, financial instruments whose value is linked to prices of bonds and stocks, can be a lucrative for banks, especially when they are specially tailored for the customer on the other side of the trade.
More than half of ACS's 10 billion euros in debt — an amount that is more than twice the size of the company's shrinking market value — is linked to this diversification effort.
"This is a bit like a convertible bond, in that its value is linked to indirect financial performance" -- to wit, the higher ticket and TV revenue that teams earn in Serie A. Going into the final matches of the season last Sunday, bondholders still had an outside shot at the windfall.
