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Portfolio Margining:
Recent Developments and Innovations in Single Stock Concentration Risk Management
Published in Investments & Wealth Monitor, January/February 2010

This is the first of two articles focusing on recent developments and innovations within the discipline of single stock concentration risk management. The articles will assess the inconsistent position the Internal Revenue Service (IRS) has taken with respect to prepaid variable forwards (PVFs) and suggest several alternatives to a PVF that deliver the same attractive features as a PVF—hedging, monetization, and tax deferral—but through structures that eliminate or lessen the tax risk and audit risk associated with PVFs. Read the article.