Immunization Definition:

Vaccination, also called diversification, is a reasonable risk-reducing strategy for the life of assets and liabilities, thus minimizing the impact of interest rates on equity over time. For example, large banks now need to protect their capital, while paying pension funds a few years later. These institutions are anxious to protect the value of their departments in the future and face uncertain interest rates in the future.

  • Vaccination is a risk-reduction strategy suitable for the life of assets and liabilities, so that the securities in the portfolio are protected from fluctuations in interest rates.
  • Vaccination can be done through cash flow correspondence, period correspondence, convex correspondence and option trading in futures, futures and securities.
  • The disadvantage of portfolio immunizations is that if the value of the asset has increased and so has a liability, the cost of opportunities will be lost.

Meanings of Immunization

  1. The process of protecting an individual or animal from infection, usually through vaccination.

Sentences of Immunization

  1. We recommend flow shots to all employees