{"id":30298,"date":"2013-09-24T23:14:17","date_gmt":"2013-09-24T21:14:17","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/edhec-risk-institute-study-shows-that-corporate-bonds-can-be-a-highly-attractive-addition-to-alm-solutions\/"},"modified":"2013-09-24T23:14:17","modified_gmt":"2013-09-24T21:14:17","slug":"edhec-risk-institute-study-shows-that-corporate-bonds-can-be-a-highly-attractive-addition-to-alm-solutions","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/edhec-risk-institute-study-shows-that-corporate-bonds-can-be-a-highly-attractive-addition-to-alm-solutions\/","title":{"rendered":"EDHEC-Risk Institute study shows that corporate bonds can be a highly attractive addition to ALM solutions"},"content":{"rendered":"<p>In a paper produced as part of the research chair on \u201cThe Case for Inflation-Linked Corporate Bonds: Issuers\u2019 and Investors\u2019 Perspectives\u201d at EDHEC-Risk Institute, supported by Rothschild &#038; Cie, EDHEC-Risk researchers have provided a comprehensive analysis of the sources of added-value of corporate bonds for institutional investors. <\/p>\n<p><quote>The paper, \u201cAnalysing and Decomposing the Sources of Added-Value of Corporate Bonds within Institutional Investors\u2019 Portfolios,\u201d finds corporate bonds to be attractive additions to investors\u2019 portfolios: <\/p>\n<ul>\n<li> Introducing corporate bonds in performance-seeking portfolios (PSPs) typically generates positive benefits from an asset-liability management perspective since it will lead to substantial improvements in hedging benefits, which come at the cost of a less-than-proportional reduction in performance compared to equity-dominated portfolios.<\/li>\n<\/ul>\n<ul>\n<li> Introducing corporate bonds in liability-hedging portfolios (LHPs) is also found to generate a positive impact on investor welfare since it leads to improvements in both hedging and performance benefits, especially for investors facing liabilities discounted using a credit spread adjustment.<\/quote><\/li>\n<\/ul>\n<p>In this context, investors may wish to assess whether a particular proportion of corporate bonds in each portfolio would lead to the highest level of welfare gains. <\/p>\n<p>A copy of \u201cAnalysing and Decomposing the Sources of Added-Value of Corporate Bonds within Institutional Investors\u2019 Portfolios\u201d can be downloaded via the following link: <a href=\"http:\/\/docs.edhec-risk.com\/mrk\/000000\/Press\/EDHEC_Publication_Analysing_Added-Value_Corporate_Bonds.pdf\">http:\/\/docs.edhec-risk.com\/mrk\/000000\/Press\/EDHEC_Publication_Analysing_Added-Value_Corporate_Bonds.pdf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a paper produced as part of the research chair on \u201cThe Case for Inflation-Linked Corporate Bonds: Issuers\u2019 and Investors\u2019 Perspectives\u201d at EDHEC-Risk Institute, supported by Rothschild &#038; Cie, EDHEC-Risk researchers have provided a comprehensive analysis of the sources of added-value of corporate bonds for institutional investors.<\/p>\n","protected":false},"author":20,"featured_media":30296,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1809,1655,1856,1859,1681,1676,1651,1437,1724,2091],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/30298"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=30298"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/30298\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/30296"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=30298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=30298"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=30298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}