Contingent immunization
An arrangement in which the money manager pursues an active bond portfolio strategy until an adverse investment experience drives the then-available potential return down to the safetynet level. When that point is reached, the money manager is obligated to pursue an immunization strategy to lock in the safety-net level return. |
Similar financial terms
Contingent claimA claim that can be made only if one or more specified outcomes occur.
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net worth of the firm.
Multiperiod immunization
A portfolio strategy in which a portfolio is created that will be capable of satisfying more than one predetermined future liability regardless if interest rates change.
