Immunization (Finance)

Immunization (Finance)

Edited by 

List price: US$40.99

Currently unavailable

Add to wishlist

AbeBooks may have this title (opens in new window).

Try AbeBooks

Description

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. In finance, interest rate immunization is a strategy that ensures that a change in interest rates will not affect the value of a portfolio. Similarly, immunization can be used to ensure that the value of a pension fund's or a firm's assets will increase or decrease in exactly the opposite amount of their liabilities, thus leaving the value of the pension fund's surplus or firm's equity unchanged, regardless of changes in the interest rate. Interest rate immunization can be accomplished by several methods, including cash flow matching, duration matching, and volatility and convexity matching. It can also be accomplished by trading in bond forwards, futures, or options.show more

Product details

  • Paperback | 68 pages
  • 152 x 229 x 4mm | 113g
  • Cred Press
  • United States
  • English
  • 6136682451
  • 9786136682457