| Summary: | 碩士 === 文化大學 === 國際企業管理研究所 === 83 === The financial resources of the Directorate General of Postal remittances & Savings Banks originate from the bank deposits of accout holders, but they also form a debt to these account holders. Therefore, the strategy for investment in bond portfolios by the Directorate General should not only be conform to the basic principles of capital turnover in banking, but it should also ensure that sufficient cash can be produced at any time to replenish the withdrawals of account holders and that there is a steady income to fulfil interest payments to account holders. Therefore, the main objective of such a strategy is to seek portfolios with the lowest cost , lowest risk and with a steady income.
The two most common investment strategies are (1)the Dedication Strategy ang (2)the Immunization Strategy. Dedication, or Cash Matching, uses the technique of linear programming to seek bond portfolios with the lowest cost,as to ensure that a sufficient amount of cash can be produced at any time to fulfil the various liabilities.Immunization is the establishment of duration of debts and assets as to avoid that the value of portfolios will be influenced by a fluctuation in interest rates .Cash Matching normally does not permit the existence of debts and assets. The cash flow of a portfolio before or at the day of payment should be greater than the loan to be fulfilled. No interest will be payed over the remaining amount of cash. The basic costs of establishing a portfolio through Cash Matching are therefore higher than those through Immunization.However,the Immunization Strategy often leads to value fluctuations of portfolios,because actual fluctuations in interest rates may differ from expected fluctuations at the time of establishment of the portfolio.A frequent rebalancing of the portfolio is therefore needed.All these factors make it hard to determine which strategy is the most suitable.
The main objective of this study is to create a method through which a sufficient cash low can be obtained in order to replenish the withdrawals of account holders. Therefore a portfolio has to be established first through the implementation of the Dedication Stratcgy and a steady income has to be acquired through the Bank''s daily operatioos. The achieved results from using the technique of linedar programing can seek bond portfolios with the lowest cost, and it can produce sufficient cash at any time to replenish the with drawals of account holders. Only then interest payments to account holders can be fulfilled and operation expenses can be covered. When investing in bonds the risk of fluctuations in interest rates should be avoided. The question thereford is whether we can ensure expccted in terest rates by studying hypothctical investments in portfolios through the implementation of the Immunization Strategy. The achieved results from such a study are even better than expected, since hypothetical situations do not necessarily comply with the actual fluctuations in interest rates.
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