Fixed Income Quiz investor, entering, receive, following

adehbone

Which of the following is true:

a) The average institutional fixed-income portfolio has approximately 85 percent of the assets managed passively and 15 percent actively managed.
b) Quality option is the option of which acceptable Treasury issue to deliver.
c) A UK investor may perfectly hedge a $10 million MBS position by entering a forward to deliver pounds and receive dollars.

NO EXCUSES

oneboy

B Quality, Wild Card, Timing.

I have no idea if A is right or not. C is definitely not right. MBS position has variable cash flows based on prepayment.



Edited 1 time(s). Last edit at Monday, May 23, 2011 at 06:18PM by Paraguay.

thommo77

B. i read that in my notes last night.

mcmc

B as well- I don't remember the numbers, but I think a large majority of fixed income assets are actively managed.

Foreign MBS investments have a touch more to consider than just the currency factor.

dyga

B=swap options

mar350

dunno but sounds like A for me

nannan66

Answer is B

NO EXCUSES

Chuckrox

whats the correct percentage for A???

strikethree

B

Edit: yay!



Edited 1 time(s). Last edit at Friday, May 27, 2011 at 09:43PM by muffin09.