On Monday, the firm confirmed it had begun selling off some of its private
bond portfolio and had cancelled entry fees to attract new investors to its funds.
That could equate with a $3.5 tln
bond portfolio as the Fed is more comfortable with managing money markets at that level.
MMAC reduced its investment in the leveraged
bond portfolio through the termination of 15 total return swap agreements that had a total notional amount of USD 102.6 million and sold one multi-family tax-exempt bond and one subordinate certificate interest in a multi-family tax-exempt bond.
Select indexes demonstrate that a 60 percent stock and 40 percent
bond portfolio declined between 22 and 25 percent from peak to trough.
The current government
bond portfolio held by local Saudi banks is the highest since the $33.9bn (SAR127.4bn) recorded in December 2007.
For example, if the
bond portfolio matures in four years, the leverage should also have the same four yearduration.
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Summary paragraph: From aiCIO's June issue, Charlie Thomas asks where is the sweet spot for concentration in a
bond portfolio.