A pension fund purchases bonds so that the payments from the bonds provide sufficient cash inflow in a timely manner to offset the cash outflows from the pension fund. What is this investment strategy called?

Question

Quizplus · Accepted Answer

This investment strategy is called cash flow matching, where the investment portfolio is structured to match the cash outflows of the pension fund with the cash inflows from the bonds. This helps to ensure that the pension fund has sufficient funds to meet its obligations in a timely manner. Choices B, C, D, and E are not accurate descriptions of this investment strategy.

A Pension Fund Purchases Bonds So That the Payments from the Bonds