logo share us

Segregated Portfolio

   

Definition: a Segregated Portfolio is a mechanism used by mutual funds to protect the interests of all investors in case of a credit event, and also to deal with liquidity risk.
The main objective of a segregated portfolio is to handle defaulted bonds in the portfolio separately so that the original scheme is not greatly affected by stopping investors from buying at low price to take advantage of the price appreciation a little later after the default dues are cleared.


   
   
💡

Learn more about Segregated Portfolios.



More on investing: Alternative Investments, Asset Management, Break-even Point, BRIC Countries, Capital Structure, more on investing...


MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.


add us to your desktop

Add MBA Brief to your desktop / iPad

   

© 2024 MBA Brief - Last updated: 21-11-2024  -  Privacy   |   Terms