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Fixed Income Quiz

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

B

Edit: yay!



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

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whats the correct percentage for A???

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Answer is B

NO EXCUSES

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dunno but sounds like A for me

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B. i read that in my notes last night.

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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.

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B=swap options

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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.

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