Overview: do not attempt to identify under/overpriced bonds; assumes prices are fairly set
Indexing: mirror overall results of the broad mkt (hard because mkt chgs frequently)
Immunization: attempt to eliminate interest rate risk from FP by either immunizing the net worth or the holding period. In both cases it requires rebalancing the PF
CF matching: it does eliminate risk, but is severly limits PF choices (could even be possible that no asset match the required duration)
Active bond management
Overview: attempt to improve returns either by (a) forecasting future rates or (b) identifying mispriced bonds using bond swaps
Substitution: replace a bond w/ nearly identical substitute w/ a lower price (b)
Intermarket spread: in anticipation of chgs in spread btwn diff sectors of bond mkt (b)
Rate anticipation: in anticipation of chg in rate that might affect some bonds more than others (a)