The Studies On The Portfolio Investment And The Risk Management Of Fixed-Income Securities

Fixed income securities market is an important component of the capital market,and there is a developed fixed income securities market in western countries which have a relatively well-developed capital market. Comparatively, China's fixed income securities market is relatively lagging behind. The State Council promulgated the "Several comments about promoting capital market's reform and opening up and stable development" on January 31, 2004. This article points out that we need develop the bond markets actively, and our fixed income securities market will enter a stage of rapid development. With the development of the fixed income securities market, a lot of fixed income securities and their derivative products will emerge to emerge. At the same time, China is promoting the reform of marketization of interest rates steadily. With the constant deepening of reform, the interest rate of government bonds, as a risk-free rate , will become the benchmark interest rate in financial markets. The interest rate term structure formed by different government bond's rate will have a significant impact on the pricing of financial products, which include stocks, fixed income securities and derivatives. Western research on the theory of fixed income securities is very rich, and it requires more advanced mathematical tools. Against this theoretical and practical background, researching interest rate term structure, fixed income securities pricing mechanisms, fixed income portfolio investment and risk management have important theoretical and practical significance. The research of pricing theory of fixed income securities, portfolio theory and risk management in the West is already very mature. The theories and models of interest rate term structure are developing progressively in the West's mature financial markets. The interest rate term structure model which applies to the pricing of fixed income securities played a tremendous role in the development of the bond market in the west. It is a useful attempt that applying the relatively mature theory, such as fixed income securities pricing theory, portfolio theory and risk management theory, to our inadequate markets, and it can make meaningful and valuable comments and suggestions to our fixed income securities market.Empirical analysis and normative analysis are two research methods in the economics study, as well the basic analysis methods in this article. These two methods are...