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Analysis

Optimizing Bond Portfolio for a German Pension Fund

FreeVerified credential2 weeksAdvanced

Overview

What this challenge is about.

Analyze a bond portfolio, cut interest rate risk by 20%, and maintain a 2.5% yield to earn your verifiable certificate.

The scenario

The pension fund is based in Frankfurt and has a liability duration of 12 years. Its current portfolio is 70% German government bonds (Bunds) and 30% investment-grade corporate bonds, with an average duration of 8 years.

CredentialBlockchain-anchored
ShareableLinkedIn-ready
LanguageEnglish
PaceSelf-paced

The Brief

What you'll do, and what you'll demonstrate.

How should the pension fund rebalance its bond portfolio to reduce interest rate risk while maintaining sufficient yield to meet future obligations?

Earning criteria — what you'll demonstrate

  • Apply duration and convexity to measure interest rate risk
  • Construct a bond portfolio that matches liability duration
  • Analyze yield curve shifts and their impact on bond prices
  • Integrate credit risk considerations in fixed-income portfolio management

Program Fit

Where this fits in your program.

Sharpens the same skills your degree expects you to demonstrate.

Aligned coursework coming soon.

One more thing

You can put a credential on your CV by Friday.

Optimizing Bond Portfolio for a German Pension Fund