Explain how interest rate futures can be used to immunize a portfolio from interest rate risk. Explain

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Explain how interest rate futures can be used to immunize a portfolio from interest rate risk.

Explain how a portfolio manager would use futures contracts to shorten the duration of a bond portfolio.

Explain why a portfolio manager might rather use futures contracts instead of trading actual bonds in the spot market.

Posted Date: May 19, 2024 12:13 AM

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Explain how interest rate futures can be used to immunize a portfolio from interest rate risk. Explain

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