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fixed income: mitigating risk through active management
fixed income: mitigating risk through active management

... relied upon as a recommendation to purchase any security or as a solicitation or investment advice from the Advisor. Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries. Issued in the United States by MF ...
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Economics 11 - Bullis Haiku

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... c) Given the graph above, Margaret River’s opportunity cost of producing more cheese in ...
Callable Class, Series 2: Payout Scenarios #3
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... “I want to participate in the capital markets without risking my hard-earned money” ...
Fixed Income in a Rising Rate Environment
Fixed Income in a Rising Rate Environment

... Many investors may believe that the duration of an asset class is the absolute measure of what will happen during periods of rising rates. Classically defined, every one year of duration represents a 1% move in the price of the asset class for every 100 basis point move in rates. For example, a bond ...
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www.ci.com

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Investment Analysis Eco/Bus350

... http://www.qc.edu/~twang/course/350/i nvestments.html. Announcements, homework, cases, exam dates are all on the webpage. ...
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(PPT, 148KB)

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PPT on Bond Market - Kleykamp in Taiwan

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... The above discussion attributes the ability of the slope of the yield curve to predict real activity to monetary policy. While real business cycle theory would generally eschew such an interpretation, it has difficulty explaining the forecasting success of the yield curve. Notwithstanding this diffi ...
Energizing High Yield Bond Investors
Energizing High Yield Bond Investors

... The assertions contained herein are based on RidgeWorth’s opinion. This information is general and educational in nature and is not intended to be authoritative. All information contained herein is believed to be correct, but accuracy cannot be guaranteed. This information is based on information av ...
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Fixed-income attribution

Fixed-income attribution refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio include the overall level of the yield curve, the slope of the yield curve, and the credit spreads of the bonds in the portfolio. A portfolio manager may hold firm views on the ways in which these factors will change in the near future, so in three separate risk decisions he positions the assets in the portfolio to take advantage of the expected forthcoming market movements. If all views subsequently prove to be correct, then each decision will generate a profit. If one view is wrong, it will generate a loss, but the effect of the other bets may compensate. The overall performance will then be the sum of the performance contributions from each source of risk. Attribution is therefore an extremely useful tool in verifying a fund manager’s claims to possessing particular investment skills. If a fund is marketed as being interest-rate neutral while providing consistent returns from superior credit research, then an attribution report will confirm this claim. Conversely, if the attribution report shows that this same manager is making non-zero returns from interest rate movements, then his exposure to interest rate risk is clearly not zero and his investment process clearly differs from his stated position.Fixed-income attribution therefore provides a much deeper level of information than is available from a simple portfolio performance report. Typically, such a report only shows returns at an aggregated level, and provides no feedback as to where the investor’s true skills lie. For these reasons, fixed-income attribution is rapidly growing in importance in the investment industry.
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