Contingent Immunization

A method of fixed income portfolio management, whereby managers are granted significant powers of control over the selection of products to be added and removed from the portfolio, as long as the products remain profitable. Should these products become unprofitable past a set threshold, the manager must then capitalize the security under immunization procedures.

Similar to the portfolio insurance methodology used in the equity markets, contingent immunization provides managers with the ability to replace underperforming fixed income assets with better performing ones while restricting their powers in cases where declines in profits occur.


Investment dictionary. . 2012.

Look at other dictionaries:

  • 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 safety net level. When that point is reached, the money manager is… …   Financial and business terms

  • 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 safety net level. When that point is reached, the money manager is… …   Financial and business terms

  • Обусловленная иммунизация — (CONTINGENT IMMUNIZATION) форма управления портфелем облигаций, сочетающая элементы пассивного и активного управления. Пока достигаются благоприятные результаты, осуществляется активное управление портфелем облигаций. В случае неблагоприятных… …   Финансовый глоссарий

  • Dedicated Portfolio Theory — Dedicated Portfolio Theory, in finance, deals with the characteristics and features of a portfolio built to generate a predictable stream of future cash inflows. This is achieved by purchasing bonds and/or other fixed income securities (such as… …   Wikipedia

  • Safety cushion — In a contingent immunization strategy, the difference between the initially available immunization level and the safety net return. The New York Times Financial Glossary …   Financial and business terms

  • Safety-net return — The minimum available return that will trigger an immunization strategy in a contingent immunization strategy. The New York Times Financial Glossary …   Financial and business terms

  • safety cushion — In a contingent immunization strategy, the difference between the initially available immunization level and the safety net return. Bloomberg Financial Dictionary …   Financial and business terms

  • safety-net return — The minimum available return that will trigger an immunization strategy in a contingent immunization strategy. Bloomberg Financial Dictionary …   Financial and business terms

  • Условная иммунизация — соглашение, согласно которому инвестиционный менеджер действует в рамках активной стратегии управления портфелем облигаций до тех пор, пока обратный инвестиционный процесс не приводит к тому, что доступная на тот момент потенциальная доходность… …   Финансовый словарь

  • Dollar safety margin — The dollar equivalent of the safety cushion for a portfolio in a contingent immunization strategy. The New York Times Financial Glossary …   Financial and business terms

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