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: Flex 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

Basic Math
1.2K views

1. An engineer collected the data below showing the speed, s, of a Toyota Camry and...

Chemistry
1.2K views

for the equation 2KCl+CaF2->2KF+CaCl2, 55.1 grams of KCl is reacted with 46.7 grams of CaF2, how...

Basic Math
1.2K views

Which description represents this equation?7x-2=33Two times the quantity of seven less than a number equals...

Accounting
1.2K views

On January 1, 2016, Caleb Corp. paid $1,020,000 to acquire all Kelton Co using cash...

Accounting
1.2K views

Down Under Products, Limited, of Australla has budgeted sales of Its popular boomerang for the...

Accounting
1.2K views

Write an Essay on why we need Accounting Regulation and in your essay please explain...

Accounting
1.2K views

Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2018. Payment was made in...

Accounting
1.2K views

Marine, Inc., manufactures a product that is available in both a flexible and a rigid...

Accounting
1.2K views

Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole...

Accounting
1.2K views

Oakwood Company produces maple bookcases. The following information is available for the production of a...

Accounting
1.2K views

6. What 3-4 top priority issues do CEO Roy Armes and Cooper Tire management need...

Accounting
1.2K views

Problem 9-6 Utilizing a Constrained Resource ( LO2 - CC7, 8) - EDITED Soft and...