Advertisement
Anonymous
3
Discussion (3)
Learn how to style your text
Reply
Save
A more direct answer to whether its problematic is "yes, but not because bonds are constantly maturing." The real issue is balancing the return and the duration of a bond portfolio, that is, the sensitvity of the portfolio to interest rate cahnges. The use of different maturities is necessary to acheive the desired yield of the portfolio while maintaining an palatable duration
Reply
Save
Hariz Arthur Maloy
21 Mar 2019
Independent Financial Advisor at Promiseland Independent
Read 1 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
Yes, it is formed by different bonds who have different maturity dates.