Loans portfolio value does not fall at all
loans portfolio
Basically, there are two different types of absolute return management: asymmetric and symmetric strategies. Asymmetric strategies, which are often referred to as protection strategies, focus on avoiding losses in falling markets and participate in rising markets. The payout profile of these strategies is asymmetric or, to be more precise, it is convex, that is, a line connecting two points on its graph is never below the graph. In a falling market, loans portfolio value does not fall at all or at least falls at a slower rate than the market. In a rising market it participates in the opportunities either at a slower rate than the market, in line with the market or even at a higher rate when the portfolio can take higher risks than the market.
loans portfolio
