Bond Investment Mentor®

Managing Optionality in the Investment Portfolio

Episode Summary

Chris explores the concept of option risk, also known as optionality, which is a critical element of managing a financial institution's investments. Chris covers what this risk is and how to manage it in the portfolio.

Episode Notes

Welcome to Bond Investment Mentor! This is a podcast dedicated to helping community financial institutions master the art of fixed-income investments.

In this episode:

• Bond market and economic review (2:06)
• Federal Reserve update (4:31)
• July MBS prepayment report (8:25)
• Managing option risk/optionality (10:27)
  • What is option risk? 
  • How do options work? 
  • 2 types of optionality 
  • How option risk affects securities and portfolios
  • How to manage optionality
• Online training with the Bond Basics Course (30:43) (LEARN MORE)

If you have questions about anything covered in this episode, please email me at Chris @ BondInvestmentMentor.com.

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You will find more articles, tips, and resources about fixed income investing and portfolio management at BondInvestmentMentor.com. Check it out!

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