Introduction to fixed income portfolio management strategies, Financial Management

Assignment Help:
  • Investors use two management strategies to manage their fixed income portfolios. They adopt either active management strategy or passive management strategy.

  • Active management can be defined as forecasts of returns for assets that are available.

  • A portfolio manager can minimize the values of the bond portfolio while implementing liability funding methods.

  • The bond market can be classified into various segments based on the nature of characteristics such as type of issuer, credit risk, coupon level etc.

  • Yield curve strategies are classified into bullet strategies, barbell strategies and ladder strategies.

  • Passive management strategy believes in Efficient Market Hypothesis.

  • Bond indexation serves the purpose of replicating the performance of a predetermined benchmark as closely as possible.

  • Cash flow matcshing strategy is used to build portfolio wherein the cash flows of the bond portfolio exactly match a stream of liabilities. 

  • Active bond management depends on an economic scenario in order to forecast the movements of yield curve.


Related Discussions:- Introduction to fixed income portfolio management strategies

Operating cycle, discuss the applicability of operating cycle in poultry in...

discuss the applicability of operating cycle in poultry industry[consider broilers]

Define the finance function, Q. Define the finance function? Is it a risk-r...

Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana

Equity method of accounting, Q. Equity Method of Accounting? Equity Met...

Q. Equity Method of Accounting? Equity Method of Accounting - Investors cost basis is adjusted up or down (according to the % of stock ownership) as investee's retained earning

Determine the significance of gearing on shareholders, Determine the Signif...

Determine the Significance of gearing on shareholders Significance of gearing on shareholders is financial risk for anun-geared and geared company. It means that there is a gre

Interest rate anticipation strategies, Active bond management depends...

Active bond management depends on an economic scenario in order to forecast the movements of yield curve. A portfolio manager skillfully builds a portfolio wit

Explain the competitive benchmarking, Explain the Competitive Benchmarking ...

Explain the Competitive Benchmarking Healthcare services or Hospital are compared to rival 'competition 'in the same industry for instance methods of patient care and levels o

Explain marginal cost of capital, Q. Explain Marginal cost of capital? ...

Q. Explain Marginal cost of capital? The calculation of cost of capital focused when the firms total financing and its paten of financing is given and remains constant. However

91-day t-bills, 91-Day T-Bills Starting from July, 1965, 91-day T-bills...

91-Day T-Bills Starting from July, 1965, 91-day T-bills were issued at a discount rate ranging from 2.5-4.6 percent per annum. Till July, 1974, the discount rate was 4.6 percen

Ledgers, Ledgers: Ledgers record all the entries into the Cash Books. T...

Ledgers: Ledgers record all the entries into the Cash Books. They use the concept of 'double entry' bookkeeping where every ledger entry must be accompanied by another ledger e

Define price ceiling make consumers better off, How can a price ceiling mak...

How can a price ceiling make consumers better off?  Under what conditions might it make them worse off? If the supply curve is completely inelastic a price ceiling will raise c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd