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Compare and contrast the strategies of index matching (or indexing) and of immunisation for managing a...

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Finance

Compare and contrast the strategies of index matching (orindexing) and of immunisation for managing a bond portfolio.Provide examples for who would use such strategies under whatcircumstances.

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Bond management strategies Index bond strategy this is considered to be quasipassive by design The main goal of this strategy is to provide a return risk characteristic that is linked with the targeted index It has the same flexibility of a passive buy hold strategy but has some flexibility Just like tracking a stock market index the bond portfolio can be structured to mimic any published bond index Because of    See Answer
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Compare and contrast the strategies of index matching (orindexing) and of immunisation for managing a bond portfolio.Provide examples for who would use such strategies under whatcircumstances.

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