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Immunization of multiple liabilities
Journal article   Peer reviewed

Immunization of multiple liabilities

Elias S.W Shiu
Insurance, mathematics & economics, Vol.7(4), pp.219-224
1988
DOI: 10.1016/0167-6687(88)90079-0

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Abstract

It is well known that a sufficient condition for the immunization of multiple liabilities is the separate immunization of each liability outflow. This paper proves that this is also a necessary condition. It also discusses how one constructs immunized portfolios by means of linear programming.
Cash-flow matching Duration Immunization Term structure of interest rates

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