Overview of Fixed-Income Portfolio Management
Free CFA Level III: Portfolio Management lesson in Portfolio Construction. 39 min read, ~5,815 words.
Fixed income serves four roles: diversification, income, inflation hedging, and liability matching, the role determines the instrument. Total return management maximizes risk-adjusted return vs. a market benchmark; LDI minimizes surplus volatility vs. liabilities. Duration matching is the first-order hedge: match dollar duration of assets to dollar duration of liabilities. Key...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- fi pm overview
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