标题: Fixed income question [打印本页] 作者: RepoToronto 时间: 2013-5-3 12:22 标题: Fixed income question
Suppose you are given 1 billion Japanese yen. There is no immediate liquidity needs. Should we keep the money in cash or invest it in longer duration bonds?作者: dirk01 时间: 2013-5-3 12:24
No way to answer that question without looking at the client’s IPS
But if I were given 1 bln yen, I’d be selling it short (given where the yen appears to be headed….)作者: RMontgomery 时间: 2013-5-3 12:25
so what’s the main difference in investing in the two options? it’s merely market value risk is different, right? since both are Japanese government issued securities.作者: Roflnadal 时间: 2013-5-3 12:30
I understand the investment of the fund should be in a portfolio perspective. But for a mere comparison of the two investment options, money market and JGBs, the focus should be on market value risk, no? Longer duration bonds bear more risk when yield changes.作者: SpyAli 时间: 2013-5-3 12:31
– You have 1 billion Japanese yen.
– There is no immediate liquidity needs.
Should I invest money in cash or invest it in longer duration bonds?
Isn’t that way too broad a question??
Short-term duration vs Long-term duration bond? Is the yield upward sloping or flat or downward sloping? There’re so many variables to look at.
