Chapter 6: Active Bond Portfolio Management

In this section

• Rolling Down the Yield Curve
  Explore how rolling down the yield curve can enhance bond portfolio returns by capitalizing on price appreciation in an upward-sloping yield environment.
• Riding the Yield Curve Strategies
  Explore how riding the yield curve can enhance total returns through capital gains when investing in longer-term bonds, while balancing the risks of yield curve shifts and liquidity constraints.
• Duration Targeting and Convexity Adjustments
  A thorough exploration of effective duration strategies and convexity considerations for active bond portfolio management, including how to hedge interest rate risk and enhance portfolio value under varying market conditions.
• Vignette: Yield Curve Trades under Different Forecasts
  Explore scenario-based yield curve trading, including rolling down the curve, riding the curve, and adjusting duration or using derivatives for various forecast outcomes.