concavity Archives - Infinity is Really Big

February 4, 2019February 12, 2019

New Video: Immunization, Part 3

Immunization of a liability cashflow by an asset cashflow can help to cushion a company when interest rates change, but is it always possible?

My most recent video is “Actuarial Exam 2/FM: Liabilities Not Immunized by Assets in Spite of PV and Duration Matching” (Financial Math for Actuarial Exam 2 (FM), Video #171. October 2018 SOA Sample Exam, Problem #127). … Read the rest

February 1, 2019February 1, 2019

New Video: Immunization, Part 2

In the previous post, “New Video: Immunization, Part 1“, I introduced the idea of Redington immunization of liability cashflows by asset cashflows.

It was a post that delved into the details of my previous YouTube video “Actuarial Exam 2/FM Prep: Use Redington Immunization to Find a Ratio of Assets in a Portfolio” embedded … Read the rest

January 30, 2019January 31, 2019

New Video: Immunization, Part 1

It is very important for any business, including any insurance company, to be able to meet their financial liability obligations.

A major class of liabilities that insurance companies must plan for are the claims from their customers. For example, if a person buys car insurance, then the insurance company would be obligated to pay for, among other things, some or … Read the rest