How can interest rate swap be used to reduce the duration of portfolio to match the duration
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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...
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To reduce the duration so as to match the benchmark the manager can enter into a swap as the fixedrate payer If the manager wanted to increase the duration a position in a swap can be taken to be a fi...View the full answer
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