A Possible Approach for Managing Bonds Portfolio

Abstract

Abstract In a society in which the economy was affected by the financial crisis, managers need to effectively manage their available resources. Consequently there is a need for a portfolio of bonds that is required by the necessity of financial resources when companies need to borrow large sums of money, which a single bank can not provide. This paper presents the need for a better management of the portfolio of bonds, and the steps taken in achieving this objective. To achieve this operation, in article is suggested to carry out analysis of the rate of return on assets, compared with interest rates in the financial market, as well as forecast of the interest rate and portfolio adjustment. Consequently, the efficiency criterion defines an efficient portfolio the one that for a given value of return rate of return or minimizes variance for a given variance of return, maximizes its hope.