Search results
Results From The WOW.Com Content Network
4 strategies for diversifying your bond portfolio. A bond is a type of debt security in which a company, government or government agency agrees to pay back the borrower a certain amount of ...
Below are five popular strategies for building a bond portfolio, including how they work and the key risks that they mitigate. 1. Buy-to-hold. ... you can avoid interest-rate risk.
Frank Redington is generally considered to be the originator of the immunization strategy. Redington was an actuary from the United Kingdom. In 1952 he published his "Review of the Principle of Life-Office Valuations," in which he defined immunization as "the investment of the assets in such a way that the existing business is immune to a general change in the rate of interest."
A financial advisor told me the pros of building a two-part bond ladder (three-year Treasurys and 10-year corporates) to generate fixed income and cover required minimum distributions (RMDs).
Fixed-income arbitrage is a strategy that involves a substantial level of risk. The strategy itself provides relatively small returns that can be offset with huge losses given varying market conditions and poor judgement calls. Due to the risk-return nature of the strategy, it is not often used by common investors.
There are no securities remaining to award to Company 5. Since the last company to be awarded any securities was Company 4, the interest rate they declared, 2.85%, becomes the standard rate for all Treasuries awarded in this auction. Thus, Companies 1, 2, and 3 also obtain 2.85% as their interest rate, as well as the non-competitive bidders.
The types of bonds used in a bond ladder can vary, but they often include U.S. Treasurys, municipal bonds and corporate bonds. These bonds are selected based on their credit quality, interest ...
Convergence trade is a trading strategy consisting of two positions: buying one asset forward—i.e., for delivery in future (going long the asset)—and selling a similar asset forward (going short the asset) for a higher price, in the expectation that by the time the assets must be delivered, the prices will have become closer to equal (will have converged), and thus one profits by the ...