An analyst who selects a particular holding period and predicts the yield curve at the end of that holding period is engaging in

Question

Quizplus · Accepted Answer

This describes horizon analysis, which involves predicting the yield curve at a particular time in the future. A is incorrect – rate anticipation swaps involve changing the maturity of debt instruments to take advantage of expected movements in interest rates. B is incorrect – immunization is a risk management technique used to ensure a portfolio's returns are not affected by interest rate movements. D is incorrect - intermarket spread swap is a swap between two different asset classes with different credit ratings.

An Analyst Who Selects a Particular Holding Period and Predicts