Question
Discuss how interest rate futures can be used to immunize a portfolio from interest rate risk. Explain how a portfolio manager would use futures contracts
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Discuss how interest rate futures can be used to immunize a portfolio from interest rate risk. Explain how a portfolio manager would use futures contracts to shorten the duration of a bond portfolio. Explain why a portfolio manager might rather use futures contracts instead of trading actual bonds in the spot market.
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
