IRABOR Uyimwen Kurtis, PhD1 & OMIGIE Obehi Samuel, PhD2
Institute of Public Administration and Extension Services (IPAES)
Department of Business Administration,
Faculty of Management Sciences
University of Benin, Benin City, Nigeria.
uyimwen.irabor@uniben. edu or urakurtis@gmail.com
Abstract
This study examined corporate bond duration and immunization strategy in the Nigerian bond market for the period 2001 to 2020. The Auto-regressive Distributed Lag Model (ARDL) regression method was employed to examine the data. The findings from the estimation show that corporate bond market was immunized against reinvestment risk in the short term in which bond investment risk was mitigated / protected against inflation risk. Therefore, the study recommends that there is the need for bond users to efficiently use corporate bond duration to manage inflation risk and reinvestment risk to give value to money invested and the expected returns.
Keywords: Bond Duration, Bond Market, Corporate Bond, Immunization Strategy Inflation Rate, Interest Rate Risk, Reinvestment Risk
