HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Bonds » duration matching strategy

Duration Matching Strategy

Definition
A type of immunization wherein the duration of assets in the portfolio is matched to the duration of the investor's liabilities. Since duration is a measure in determining a bond's sensitivity to interest rates, duration matching is used to manage a portfolio so that changes in interest rates will influence price and reinvestment risk at the same rate, hence, keeping the portfolio's rate of return constant.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.