Assume you are a bond portfolio manager with $100 million of 20-year corporate. Further assume you wish

Question:

Assume you are a bond manager with $100 million of 20-year corporate. Further assume you wish to hold one-year corporate. Assuming for the moment the avail- ability of any future you wish, design a strategy using futures to accomplish this switch. How would this be accomplished using futures that are traded? What is the additional risk?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...