Constant Proportion Portfolio Insurance

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Definition: Constant Proportion Portfolio Insurance


Constant Proportion Portfolio Insurance


Full Definition of Constant Proportion Portfolio Insurance


CPPI. A type of security derivative that creates exposure to an investment while reducing the risk and guaranteeing invested capital. CPPI is created through the purchase of a zero-coupon bond, with the cash proceeds being leveraged. A bond floor is set for the CPPI so that cash flows can be paid, hence guaranteed invested capital.


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Constant Proportion Portfolio Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/constant-proportion-portfolio-insurance/.
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Constant Proportion Portfolio Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/constant-proportion-portfolio-insurance/ (accessed: March 29, 2024).
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Constant Proportion Portfolio Insurance. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/constant-proportion-portfolio-insurance/

Definition Sources


Definitions for Constant Proportion Portfolio Insurance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.