Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. compare and contrast the strategies of index match

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

80.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
4.4 Ratings (702 Votes)
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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

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.

Other questions asked by students

Q

Consider the following figure 75 S Find x Given Find R mZRST 2x 6 mZTSV...

Geometry
Q

29) Regarding the neurotoxigenic disease caused by Clostridium tetani, which of the following among A-D is not correct? A. Infection...

Biology
Q

What are the functions of 5 and 3 UTR S T P and SC in...

Biology
Q

Suppose we want to choose 2 colors, without replacement, from the 5 colors red, blue,...

Algebra
Q

Jasper Company has 58% of its sales on credit and 42% for cash. All credit...

Accounting
Q

Need help with this complete the cash budget. (Cash deficiency, repayments and interest should...

Accounting
Q

Dennisport Corporation has an acid-test ratio of 2.9. It has current liabilities of $59,000 and...

Accounting
Q

Conrad, Incorporated recently lost a portion of its records in an office fire. The following...

Accounting
Q

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility...

Accounting
Q

Margo, a calendar year taxpayer, paid $580,000 for new machinery (seven-year recovery property) placed in...

Accounting
Q

reasons to know what cost of job is

Accounting
Q

Question 3 Tom Wells claims the formula for the cash payback technique is the same...

Accounting