标题: PVD of Cash Flows [打印本页] 作者: king_kong 时间: 2011-7-11 19:40 标题: PVD of Cash Flows
Does anyone have a shorter and easier way to explain Present Value of Distributions of Cash Flows?
I am finding it hard to explain and present.作者: Chuckrox 时间: 2011-7-11 19:40
Not sure how short you're looking for, but here is what I have in my notes:
PVD
-Measures proportion of index's total duration attributable to cash flows falling within selected periods
-Describes how total duration is distributed across maturity
-If manager can mimic PVD, portfolio will have same sensitivities as benchmark
Once you know all that, the actual steps taken are pretty intuitive.
