A Research On Bond Portfolio Strategy Of Harbin Bank

Bond market is an important part of the financial markets, but also the mainchannel of a country and corporate finance, which has received worldwideattention and support. In1981, China resumed the issue of bonds, and the bondmarket kept growing since then. Currently, China’s bond market has theinter-bank bond market as main body, exchange and bank counter bond market assupplement. It has been developed a great deal in the varieties of bonds, themain body of issuing, and the form of transaction. The formation of theinter-bank bond market has created great convenience for market participants’investment and financing, and expanded the space for the market participants toadjust asset structure, expand investment channels, and disperse the assets risk. Italso enhances the capital mobility, and improves the capital efficiency. Thecurrent bond investment business has become one of the three assets businessesof financial institutions, and plays a crucial role. However, due to the marketprice and the actual bond yield is affected by many factors, with changes in thenational macro-economic policies and external environmental factors, theinvestors’ actual returns will also change, so that the behavior of investors willproduce a variety of risks. Therefore, the bond portfolio choosing strategy hasbecome the focus of investors’ attention.Based on the study of development process of foreign bond portfolio,China’s interbank market, bond market, and bond investment banking business ofHarbin Bank, this thesis points out the main problems in the bond investmentbusiness of Harbin Bank, and, on this basis, studies the bond por tfolio strategyselection as well as the bond portfolio risk control of Harbin Bank. As to thestrategic choices of portfolio, through the analysis of the value of bonds and therole of bond investment in the asset-liability management, it makes positive andpassive bond portfolio strategies. In terms of investment risk control, through thecalculations of bond duration and convexity, it makes judgment on the sensitivityof the interest rate changes to the investment income, and provides a goodanalysis tool to improve the bond income and avoid investment risk effectively.