In fixed income last chapter ‘active management- credit strategy’, in eg 2 CFA core( see image) while finding weights of bonds for the purpose of calculating G-spread , author used maturity of bonds. Sir, has solved similar question in class ( video 37) in which he used duration of bonds for finding weights. I’m confused as to when we should use ‘duration’ and when we use ‘maturity’ ?
The_RumiIntermediate
For finding weights with help of allegation whether to use maturity or duration ?
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Please follow the method that the core curriculum uses. In an older doubt of similar kind, sir instructed to go by what the core states.
Also, note that in a later example of a different kind, the author uses duration as weight. Please follow accordingly.
Ok. But is there any differentiating criteria as to when duration can be used and when maturity can be used for doing allegation ?