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Why do they need to hedge against rates falling? The value of a mixed portfolio of stocks and bonds will also move with changes in rates.
by briartoon 4y ago
Why do they need to hedge against rates falling? The value of a mixed portfolio of stocks and bonds will also move with changes in rates.
- growse 4y ago> Why do they need to hedge against rates falling? The value of a mixed portfolio of stocks and bonds will also move with changes in rates. Because the value of their present liability goes up more than the value of their bond assets, meaning they become more underfunded.