Macro Analysis
Tools:
•Inflation rates
•Unemployment rate
•International reserves
•Foreign Exchange Rates
•Trade deficit/ surplus
•Budget status
•Monetary Policy
•Prevailing and expected Interest Rates
•Credit rating expected changes
Conclusion:
•Overall macro view and economy situation
•Expected interest rate movements
•Suitable duration and convexity.
Valuation
Tools:
•Expected interest rate movements
•Yields Volatility
•Yield Curve Expectations
•Duration, convexity
•Risk adjusted return (coefficient of variation (CoV)
Investment Conclusion:
•Fixed income strategy and approach
•Risk Assessments
Integration
Tools:
•Research Reports & Recommendations.
•Compliance officer and risk manager
•Trading staff
•Internal Auditor
•Operations
Conclusion:
•Aligning the different departments to proceed with suggested investment committee conclusions.
•Receiving the compliance officer blessing
•Timing to construct and reallocate portfolios.
•Buy & Sell Stock List