Reading 22: Fixed Income PM Part 2 Flashcards
1
Q
active/passive combination
A
core part=passive
rest=active
2
Q
active/immunization
A
immunized portion: gives assured return
active portion: high return/high risk strategy
3
Q
What happens in a bond portfolio when it is levered?
A
the interest rate sensitivity of the equity (funds owned and not borrowed) increases
