Question on active management under yield slope scenarios
Expectation is as following:
positviely sloped yield curve with a decline in short rates of 25 bps and increase in long rates of 75 bps
With that said, what is the appropriate strategy: A) short duration bullet porfolio or B) long duration barbell
Answer: A) because the barbell will experience lower reinvestment rates longer longer than the bullet .. How is that? Can someone explain…
Thank you!! |
发表于 2013-5-4 14:02
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