Archive for Year: 2019

Portfolio stress test IV: historical crises and risk management

March 14, 2019 – The fourth and final article in our ‘Portfolio Stress Test‘ series will discuss whether important historical crises can be used by investors to simulate the behavior of their portfolios, should certain factors be stressed to limits that occurred in past periods of extreme economic or market distress. A portfolio...

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Portfolio stress-test III: Credit rating and bond valuation

A holder of a portfolio of bond securities faces various risks that could drastically affect the price of the underlying holdings. The most prominent factor that could introduce such price variations is the Central Bank’s interest rate regime (as we addressed in our recent article «Portfolio Stress-Test II: Interest...

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