If your portfolio has non-callable bonds; why do you face contigent claims risk and cap risk? Aren’t these risks in your assets, not liabilities? Or do you model unforeseen liabilities as these risks? The CFAI answer explains nothing.
If your portfolio has non-callable bonds; why do you face contigent claims risk and cap risk? Aren’t these risks in your assets, not liabilities? Or do you model unforeseen liabilities as these risks? The CFAI answer explains nothing.