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Assume you are managing a fixed-income / bond portfolio that is currently positioned with equal exposure to short-term and intermediate-term paper. You are currently holding

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Assume you are managing a fixed-income / bond portfolio that is currently positioned with equal exposure to short-term and intermediate-term paper. You are currently holding 15% AAA-rated issues, 10% AA, 35% BBB, 20% BB and 20% B. You face no limitations on your fixed-income holdings regarding credit quality or maturity, but you are restricted to hold only domestic fixed-income securities, you are not permitted to use equity, options or derivative securities. . Pasqual unofficia 20-12 BP1. Your team of economists forecasts declining interest rates across the entire yield curve, with more movement on the long end of the curve. In order to maximize capital gains/minimize losses in your portfolio, how woald you position securities in the portfolio and why? HINN on 17 AM

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