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CFA Level 3
Fixed Income Portfolio Management

Identifying Yield Curve Strategies for a Steepening Curve

Medium Managing Fi Portfolios Yield Curve Strategies

A fixed income portfolio manager is analyzing interest rate environments to develop an effective yield curve strategy. The manager anticipates a steepening of the yield curve in the coming months due to economic recovery and potential inflationary pressures. To capitalize on this outlook, the manager is considering different strategies to adjust the portfolio's duration and exposure to various segments of the yield curve.

Given the scenario above, which of the following strategies would most effectively take advantage of a steepening yield curve?

Hint

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