Financial

Dollar safety margin

Dollar safety margin

The dollar equivalent of the safety cushion for a portfolio in a contingent immunization strategy.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Dollar Safety Margin

In a contingent immunization strategy, the dollar amount of the return at which the contingent immunization takes place. In a contingent immunization strategy, an asset manager or investor makes investments at varying risks until something goes wrong. When an investment suffers a loss and brings the portfolio down to some pre-defined return, the asset manager or investor begins making low- or no-risk investments that guarantee that same pre-defined return. The dollar amount of that return is the dollar safety margin.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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