NO.PZ2023032703000029
问题如下：
Connor Markey, CFA, is an institutional salesperson at Limax Securities, a global investment bank. Markey’s clients include pension funds, insurance companies, mutual funds, commercial banks and hedge funds. His clients rely on him for advice regarding asset allocation, risk management and portfolio construction.
Markey is preparing for a presentation to the board of directors at NorthWake Insurance. NorthWake has traditionally used a duration matching approach to investing, but is considering instituting a cash flow matching strategy. Markey has been asked to analyze the different types of immunization strategies. Markey knows from experience that NorthWake prefers to keep their investment strategies simple.
Markey recommends that NorthWake institute a cash flow matching strategy.
A. Justify Markey’s recommendation for a cash flow matching strategy by listing two key features of the strategy that align with the client’s preference for simplicity. (2020 mock AM)
选项：
解释：
Cash flow matching strategies would have the following key features relating to simplicity.
• No yield curve assumptions required.
• Rebalancing not required.
• Complexity of the strategy is low.
• Cash flows of the asset portfolio align with the cash flows of the liability portfolio.
我的答案如下，麻烦老师批改，谢谢！
two key features of the strategy:
- Cash flow matching can mitigate the negative influence of yield curve non-parallel shift.
- Cash flow matching is more simple than duration matching because it doesn't need frequent rebalancing.
