Portfolio Management case studies, worked step by step

Cases
100
Traced to a firm
50
Topics
13
Hard
30
Topic
All topicsStock pitch and thesis defence11Fixed income, credit and LDI11Strategic and tactical allocation7Factor investing and quant6Company analysis and valuation7Performance evaluation and manager selection7Client mandates and IPS8Risk management and limit breaches8Rebalancing, implementation and costs7Real assets and private markets8Portfolio construction and optimisation7Macro and multi-asset scenarios7Asset management business and products6
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 1–7 of 7 · filtered from 100Clear filters
  1. 015A Rs 1,500 crore credit fund holds 9% in bonds of one issuer, which is downgraded from AA to BB and falls 25%. What happens to NAV, why do early redeemers gain at the expense of those who stay, and how does side-pocketing work?Fixed income, credit and LDICoreFixed incomeMutual funds
  2. 025A packaging company's loan has a net leverage covenant of 3.5 times. EBITDA is Rs 80 crore and net debt Rs 240 crore. If EBITDA falls 15%, is the covenant breached, and what equity cure would fix it?Fixed income, credit and LDICorePrivate creditFixed income
  3. 026A client can buy a 10-year government bond at 7.1% or an inflation-indexed bond at a 2.4% real yield. What inflation rate makes them equal, and which does better on Rs 50 lakh if inflation averages 4% or 6%?Fixed income, credit and LDIWarm upFixed incomeWealth management
  4. 051A client needs Rs 20 lakh a year for the next five years. Using a zero-coupon yield curve, what does a bond ladder that meets the need cost today, and which risks does it remove?Fixed income, credit and LDIWarm upFixed incomeIndian wealth management
  5. 064A gilt fund expects the 2s10s curve to steepen. Size a DV01-neutral steepener that buys Rs 100 crore of 2-year bonds (duration 1.87) against 10-year bonds (duration 7.0), and work out the P&L if the 2-year falls 20 basis points and the 10-year rises 20.Fixed income, credit and LDIHardFixed income
  6. 075An institution weighs a private credit fund yielding 13% gross, with 1.5% annual losses, a 1.5% fee and 10% carry over an 8% hurdle, locked for five years, against listed high yield at 9.5% with 1.2% losses and 0.6% fees. Compare net returns and say whether the illiquidity premium is being paid.Fixed income, credit and LDIHardPrivate creditInstitutional asset management
  7. 097A pension scheme has liabilities of Rs 1,200 crore with a duration of 14 and assets of Rs 1,000 crore with a duration of 5. What happens to the deficit if rates fall 100 basis points, and how much DV01 must be added to hedge half the liability rate risk?Fixed income, credit and LDIHardPension and endowment investingFixed income

Company names and figures are illustrative.