Analysing and Decomposing the Sources of Added-Value of Corporate Bonds Within Institutional Investors’ Portfolios

Lionel Martellini, Vincent Milhau: The present publication is drawn from the Rothschild & Cie research chair on “The Case for Inflation-Linked Corporate Bonds: Issuers’ and Investors’ Perspectives” at EDHEC-Risk Institute.

Author(s):

Lionel Martellini

Professor of finance at EDHEC Business School and scientific director of EDHEC-Risk Institute.

Vincent Milhau

Deputy scientific director of EDHEC-Risk Institute.

The purpose of this research chair is to support research undertaken at EDHEC-Risk on the benefits of inflation-linked bonds from the investors’ perspective as well as from the issuers’ perspective. The chair also focuses on comparing and contrasting investors’ and issuers’ perceptions of inflation-linked bonds. The current paper, by Lionel Martellini, Scientific Director of EDHEC-Risk Institute, and Vincent Milhau, Deputy Scientific Director of EDHEC-Risk Institute, provides a formal analysis of the benefits of corporate bonds in investors’ portfolios,  distinguishing between the impact of introducing them in performance-seeking portfolios and the impact of introducing them in liabilityhedging portfolios. The authors show that investor welfare can be improved by the design of performanceseeking portfolios with improved liabilityhedging properties, or conversely by the design of liability-hedging portfolios with improved performance properties.

Type: EDHEC Publication
Date: le 16/09/2013
Research Cluster : Finance

See Also

AGORA MEETS BERTRAND BADIE, POLITICAL SCIENTIST AND INTERNATIONAL RELATIONS SPECIALIST
News
- 21-10-2021
Agora students held another 'Rencontre de l'Agora' event on Wednesday 19 October, this...
Eiffel Excellence Scholarship: the most prestigious French scholarship you can get
News
- 21-10-2021
Mikhail Miroshnichenko joined EDHEC MiM Finance after his Bachelor’s degree in...
EDHEC-Auchan Learning Partnership: Retail industry transformations at the heart of EDHEC International BBA learning
News
- 20-10-2021
Auchan is joining forces with EDHEC to share its retail industry expertise with EDHEC...
The FIR-PRI Awards “Finance & Sustainability” prize for “best pedagogical innovation”: preparing future generations to fight climate change.
News
- 18-10-2021
At EDHEC, we want to take part in the fight against climate change. Through our...