Immunisation and Nominal: Difference between pages

Revision as of 13:22, 20 November 2015

A term which has not been restated to exclude the effects of inflation. This is the most commonly used basis for measuring and quoting financial information, also known as money terms.
Named, or 'headline'. A nominal annual rate would be a market rate named, or quoted, in a particular financial market.
Small. For example, nominal damages or compensation would be a small amount, indicating that the party was technically in the right, but that the court did not approve of the case being brought to court in the circumstances.

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-. With respect to a portfolio of liabilities, the investment in a portfolio of assets with the same modified duration such that a change in interest rates will cause no change in the net value of the assets and liabilities in combination.
+#A term which has <u>not</u> been restated to exclude the effects of inflation. This is the most commonly used basis for measuring and quoting financial information, also known as money terms.
+#Named, or 'headline'. A nominal annual rate would be a market rate named, or quoted, in a particular financial market.
+#Small. For example, nominal damages or compensation would be a small amount, indicating that the party was technically in the right, but that the court did not approve of the case being brought to court in the circumstances.
-. Similar risk management techniques in relation to other market rates or market prices.
 == See also ==
-* [[Macaulay duration]]
+* [[Aggregate money demand]]
-* [[Matching]]
+* [[Nominal annual rate]]
-* [[Portfolio immunisation]]
+* [[Real]]
+* [[Notional principal]]