Active Bond Portfolio Management Strategies
Table of Contents:
Introduction
...3
1. Chapter I
Definition and Basic Features of Bonds
..4
2. Chapter II
Bond Portfolio Management Strategies
......................7
3. Chapter III
Types of Active Bond Portfolio Management Strategies
...11
3.1 Interest Rate Anticipation
.15
3.2 Yield Curve Strategies
..16
3.3 Credit Analysis
.....20
3.4 Yield Spread Analysis
......26
3.5 Bond Swaps
......28
Conclusion
29
Bibliography
.30
Introduction
The Stock Exchange market is a really complicated but interesting place which requires a lot of attention.
When we talk about the Capital Market or the Stock Exchange we usually think about assets, stocks, shares, shareholders, brokers and so on.
One of the basic elements of the market are the bonds.
Bonds are the basic ingredients of the debt- capital market, which is the cornerstone of Economy in the most of developed countries. Almost all media contains information about the capital markets, and of course bonds, at television, in newspaper we see the situation on the markets, the rates of exchange.
All these convergence shows us that the bonds are affected by the economic and political events in the whole wide world. So we can say that the Government bonds are fundamental economic indicators of a country.
Bonds are debt instruments that represent cash flow payable during a specific time period. They represent essentially loans. The cash flows they have are interest payment on the loan and the loan redemption. Bonds are tradable in the secondary...
View Full Essay