-financing strategies. Furthermore, we analyze the relationship between them. Finally, we establish a hedging theorem concerning these …

, can gain little. Third, hedging exchange risk generally allows the U.S., but not Japanese, investors to benefit more from … international diversification. For U.S. investors, the international bond diversification with exchange risk hedging offers a … superior risk-return trade-off than the international stock diversification, with or without hedging. …

hedging long bespoke positions. In stratifying a portfolio we define Class-A as the widest credits, Class-B as the middle tier … second part of Chapter Four, we perform analysis to find out which credit index should be used in hedging a long bespoke … selection, and stepwise regression methods to find out if we should use multiple indices in our hedging practices. Multiple …

difficulties that can ensue when failing to account for estimation risk in valuation and hedging formulae. …