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

Leverages, Evaluate the importance of leverages in financial management of ...

Evaluate the importance of leverages in financial management of small scale companies

Analysis of financial plans, Part 1: Contingency plan Create contingency pl...

Part 1: Contingency plan Create contingency plans for the following scenarios: > One of your highly qualified consultants has given three months notice and is planning to move to a

Put provision, An issue with a put provision included in the ag...

An issue with a put provision included in the agreement grants the bondholder the right to sell bonds back to the issuer at a pre-specified rate

Case let, This case has been framed in order to test the skills in evaluati...

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer of petroleum and

State the term- dealing with general risk, State the term- Dealing with gen...

State the term- Dealing with general risk Part  of  the  strategic  decision  making  process  is  to  analyse  all  risk  factors  involved  with pursuing a specific course of

Market beta, The management of Nelson plc wish to estimate their firm’s equ...

The management of Nelson plc wish to estimate their firm’s equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

Define the term- profitability maximisation, Define the term- Profitability...

Define the term- Profitability maximisation Profitability maximisation would imply that a firm must be guided in financial decision making by one test; select projects, assets

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

Receipt of bids and bid opening, R eceipt of bids and bid opening We d...

R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv

INTEREST, Mr. X invests Rs. 10000 at 10% p.a compounded semi-annually. Comp...

Mr. X invests Rs. 10000 at 10% p.a compounded semi-annually. Compute value after three years.

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