CFA CFA Level 3 Difference bw Multiple Liab Immun and Cash Flow Imm – confused

Difference bw Multiple Liab Immun and Cash Flow Imm – confused

  • This topic has 0 replies, 1 voice, and was last updated Oct-17 by adossa3.
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    • adossa3
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      Hello,

      In Multiple Liab immunization – each existing portfolio cash flow stream is set off against the maturing liabilities to be paid and
      in cash flow immun. you buy a bond that matches the last maturing liab. – with the 2nd last liab’s value reduced by coupons from first bond – and so on is this correct ?

      Thanks v much

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