A Process for Risk Assessment
We assess the following risk factors:
Liquidity
The marketability of each security in the portfolio is analyzed for its ability to offer ongoing liquidity.
Regulatory
Awareness of possible forthcoming changes in government policy and their effects on the securities held in each portfolio is of importance.
Interest Rate
The degree to which a bond is sensitive to interest rate risk, known as duration, is a key market risk that is constantly managed.
Yield Curve
Shifts in the slope and shape of the yield curve are measured and monitored.
Credit
The credit rating of the portfolio, specific sectors, and individual securities is controlled.
Sector
Diversification across sector and issuer is used to mitigate credit risk.
Regulatory
Awareness of possible forthcoming changes in government policy and their effects on the securities held in each portfolio is of importance.
Yield Curve
Shifts in the slope and shape of the yield curve are measured and monitored.
Sector
Diversification across sector and issuer is used to mitigate credit risk.
Credit
The credit rating of the portfolio, specific sectors, and individual securities is controlled.
Interest Rate
The degree to which a bond is sensitive to interest rate risk, known as duration, is a key market risk that is constantly managed.
Liquidity
The marketability of each security in the portfolio is analyzed for its ability to offer ongoing liquidity.
One Oak utilizes Bloomberg, Fabkom, and research from multiple sell-side firms.
