Portfolio models for fixed income securities

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Portfolio models for fixed income securities

Financial Optimization and Risk Management Agenda Portfolio dedication Modell for porteføljeimmunisering Modeller for faktorimmunisering Statsobligasjoner Selskapsobligasjoner Oppsummering Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management Introduction Stream of future liabilities May be known with relative certainty Is matched by portfolio of securities We concentrate here on fixed income securities Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management Utgangspunkt Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management Portfolio dedication Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management Generalized portfolio dedication Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management Mismatched portfolios Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management V+: reinvested cash surplus V- : short term borrowing Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Financial Optimization and Risk Management Porfolio horizon returns with given budget Final borrowing=0 Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Portfolio dedication: adding realistic features Lot sizing Portfolio rebalancing Transaction costs Similar to mean-variance analysis Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Porteføljeimmunisering Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Porteføljeimmunisering (2) Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Porteføljeimmunisering (3) Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Porteføljeimmunisering (4) Professor Alexei A. Gaivoronski Financial Optimization and Risk Management

Porteføljeimmunisering (5) Professor Alexei A. Gaivoronski Financial Optimization and Risk Management