Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

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Duration Matching as a Risk Management Tool: A Case Study of Apple and Netflix Corporate Bonds

Authors
Yueming You1, *
1Nanjing University, 1520 Taihu Road, Suzhou, Jiangsu, 215163, China
*Corresponding author. Email: 231880209@smail.nju.edu.cn
Corresponding Author
Yueming You
Available Online 17 September 2025.
DOI
10.2991/978-94-6463-835-6_52How to use a DOI?
Keywords
Duration Matching; Interest Rate Risk; Corporate Bonds; Case Study
Abstract

This paper examines how duration matching can be employed as a practical, data-driven strategy to mitigate interest rate risk in corporate debt portfolios. Focusing on real-market corporate bonds issued by Apple Inc. and Netflix Inc., it demonstrates the steps for identifying optimal bond allocations that align a firm’s asset duration with its liability duration. The research underscores the importance of accurately measuring interest rate sensitivity through Macaulay and Modified Duration, then constructing a portfolio whose overall duration closely approximates the target liability’s duration. By methodically analyzing each bond’s yield, coupon structure, price, and resulting duration, the paper shows how to hedge against rate fluctuations and stabilize the total market value of an organization’s future debt obligations. The findings carry broad implications for both corporate and institutional investors, offering a replicable framework for duration-based risk management. It also highlights how duration matching connects theoretical models with real-world fixed-income strategy under changing market conditions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 September 2025
ISBN
978-94-6463-835-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-835-6_52How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yueming You
PY  - 2025
DA  - 2025/09/17
TI  - Duration Matching as a Risk Management Tool: A Case Study of Apple and Netflix Corporate Bonds
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 488
EP  - 494
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_52
DO  - 10.2991/978-94-6463-835-6_52
ID  - You2025
ER  -