| Cash flow matching | A form of immunization, matching cash flows from a bond portfolio with an obligation.
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| Contingent immunization | A mixed passive-active strategy that immunizes a portfolio if necessary to guarantee a minimum acceptable return but otherwise allows active management.
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| Convexity | The curvature of the price-yield relationship of a bond.
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| Dedication strategy | Refers to multiperiod cash flow matching.
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| Effective duration | Percentage change in bond price per change in the level of market interest rates.
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| Horizon analysis | Forecasting the realized compound yield over various holding periods or investment horizons.
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| Immunization | A strategy that matches durations of assets and liabilities so as to make net worth unaffected by interest rate movements.
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| Intermarket spread swap | Switching from one segment of the bond market to another (from Treasuries to corporates, for example).
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| Macaulay's duration | Effective maturity of bond, equal to weighted average of the times until each payment, with weights proportional to the present value of the payment.
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| Modified duration | Macaulay's duration divided by 1 + yield to maturity. Measures interest rate sensitivity of bond.
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| Pure yield pickup swap | Moving to higher-yield bonds.
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| Rate anticipation swap | A switch made in response to forecasts of interest rates.
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| Rebalancing | Realigning the proportions of assets in a portfolio as needed.
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| Substitution swap | Exchange of one bond for a bond with similar attributes but more attractively priced.
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| Tax swap | Swapping two similar bonds to receive a tax benefit.
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