 Fixed Income Portfolio ManagementThomas Poufinas ()
Chapter Chapter 4 in Fixed Income Investing, 2022, pp 169-263 from Springer Abstract: Abstract So far we have mainly studied the properties of bonds as debt instruments individually as well as the mechanics of their pricing. We have realized that interest rates are not necessarily fixed and may change not only with their maturity date, but also with the passage of time. These changes impact the prices of bonds. However, bonds rarely are the single investments of an investor. Most of the times they are part of a bigger portfolio, consisting of more than one bond issue or fixed income instruments, among several asset classes. Consequently, it is of interest to know how the entire bond (or fixed income) portfolio (or sub-portfolio) will be affected by potential changes in the interest rates. In this chapter we enter into the particulars of fixed income portfolio management, looking at bonds within a portfolio and not individually. We realize that interest rate risk is the driver of portfolio management and present the notions of duration and convexity as means to measure and manage this risk. We present the two different approaches for managing a fixed income portfolio, the passive and active management. This chapter introduces the reader into the details of fixed income portfolio management. Date: 2022 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-87922-8_4 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-87922-8_4 Access Statistics for this chapter More chapters in Springer Books from Springer |
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