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Yield curve strategies

Ss 12. R24. BB01. 

Vikram sharma. 

I don’t get this! There are three lines on why mr. Vikram sharma would opt for a bullet structure. 

“This approach avoids longer maturity securities to insulate the portfolio against possible adverse moves at the long end of the curve” while he categorically maintains that he expects the longer end to be unchanged. 

“The duration of his holdings may be less concentrated than Gupta’s given his benign view of long rates”  is this a good justification, if it is one at all? 

why not barbell then? 

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Jolie wrote:
Ss 12. R24. BB01.

Vikram sharma.

I don’t get this! There are three lines on why mr. Vikram sharma would opt for a bullet structure.

“This approach avoids longer maturity securities to insulate the portfolio against possible adverse moves at the long end of the curve” while he categorically maintains that he expects the longer end to be unchanged.

“The duration of his holdings may be less concentrated than Gupta’s given his benign view of long rates”  is this a good justification, if it is one at all?

why not barbell then?

Really?

I read, “He has only moderate conviction in his forecast for the long end of the curve.”  (Emphasis added.)

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

Thanks a lot! 

My pleasure.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/