Howard O'Connor
Active Member
Hi all,
Why is the first Redington condition (that the value of assets and of liabilities must be equal) necessary for immunisation? Why do we not say that if the value of assets exceeds that of liabilities then the portfolio is even safer?
Thanks
Why is the first Redington condition (that the value of assets and of liabilities must be equal) necessary for immunisation? Why do we not say that if the value of assets exceeds that of liabilities then the portfolio is even safer?
Thanks