Examples of immunize in the following topics:
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Constraint on Managers
- When managers work with equity heave capital structure they have a little more leeway, and while shareholders may be upset or suffer because of fluctuations in the value of the firm, managers may find ways to make sure their compensation can have some immunity from the market value of the firm.
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Floating-Rate Bonds
- As FRBs are almost immune to interest rate risk, they are considered conservative investments for investors who believe market rates will increase.
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Zero-Coupon Bonds
- This high duration means that these bonds' prices are particularly sensitive to changes in the interest rate and, therefore, offset or immunize the interest rate risk of these firms' long-term liabilities.