Chapter 16 lecture slides

Chapter 16 lecture slides - Chapter 16 Introduction to Bond...

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Chapter 16 Introduction to Bond Portfolio Management David S. Krause Marquette University FINA 4065
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The Investment Management Process The investment management process involves the following activities: 1) setting the investment objectives 2) developing and implementing a portfolio strategy 3) monitoring the portfolio 4) adjusting the portfolio
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Investment Objectives Specified in terms of return and risk Expressed quantitatively in terms of a benchmark - benchmark in terms of the investor’s liability structure - benchmark as a particular bond market index The benchmark should reflect the client’s investment need from a risk, return, and cash flow perspective.
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Liabilities as the Investment Objective Two categories of investors 1) Investors borrow the funds and invest those funds – funded investors (banks, savings and loan associations, credit unions, hedge funds, insurance companies) Objective: earn a return on the funds borrowed that is greater than the cost of borrowing
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This note was uploaded on 03/19/2011 for the course ACCT 440 taught by Professor Smith during the Spring '11 term at Saginaw Valley.

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Chapter 16 lecture slides - Chapter 16 Introduction to Bond...

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