Bucket

Bucket
1. A group of swaps with similar or identical maturities.

2. Any group of securities with a similar level of risk. An investment strategy called the “bucket approach,” developed by Nobel Memorial Prize winner James Tobin, recommends dividing investments into high-risk and low-risk “buckets” and then trying to achieve the highest possible return for each bucket.

1. Buckets can be used to assess the sensitivity of a portfolio of swaps to changes in interest rates. Once risk (called “bucket exposure”) has been determined (through a process called “bucket analysis”), the investor may choose to hedge that risk if it is cost-effective to do so. A strategy called immunization can be used to create a perfect hedge against all bucket exposures.

2. Tobin's strategy called for alloting stocks between a "risky bucket" and a "safe bucket". However, other proponents of the bucket strategy use up to five buckets in their variation of this approach.


Investment dictionary. . 2012.

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  • Bucket — Buck et, n. [OE. boket; cf. AS. buc pitcher, or Corn. buket tub.] 1. A vessel for drawing up water from a well, or for catching, holding, or carrying water, sap, or other liquids. [1913 Webster] The old oaken bucket, the iron bound bucket, The… …   The Collaborative International Dictionary of English

  • bucket — n. pl. bucketfuls [buk′it] n. [ME boket < Anglo Fr buket, dim. of OE buc, pitcher, bulging vessel, orig., belly < IE * bhou , var. of base * bheu : see BIG] 1. a deep, round container with a flat bottom and a curved handle, used to hold or… …   English World dictionary

  • Bucket — (engl. für Eimer) bezeichnet: einen Dämpfer für Blechblasinstrumente, siehe: Bucket Dämpfer eine maritime Gründungsart, siehe: Bucket Fundament eine abstrakte Datenstruktur, siehe: Bucketsort ein umlaufender Ort in einem Teilchenbeschleuniger.… …   Deutsch Wikipedia

  • Bucket — Buck et, v. t. [imp. & p. p. {Bucketed}; p. pr. & vb. n. {Bucketing}.] 1. To draw or lift in, or as if in, buckets; as, to bucket water. [Webster 1913 Suppl.] 2. To pour over from a bucket; to drench. [Webster 1913 Suppl.] 3. To ride (a horse)… …   The Collaborative International Dictionary of English

  • bucket — (n.) mid 13c., from Anglo Norm. buquet bucket, pail, influenced by or dim. of O.E. buc pitcher, bulging vessel, originally belly (buckets were formerly of leather as well as wood), from P.Gmc. *bukaz, from PIE *bhou , variant of root *bheu to… …   Etymology dictionary

  • bucket — ► NOUN 1) a cylindrical open container with a handle used to carry liquids. 2) (buckets) informal large quantities of liquid. 3) a scoop on a waterwheel, dredger, digger, etc. ► VERB (bucketed, bucketing) informal (bucket down) B …   English terms dictionary

  • bucket — (izg. bȁkit) m DEFINICIJA inform. kod memorije računala s izravnim pristupom, cjelina pohranjena u tu memoriju (za razliku od pojedinog podatka u toj cjelini) ETIMOLOGIJA engl.: (dosl.) vjedro …   Hrvatski jezični portal

  • bucket — [n] container, often for liquids, with handle brazier, can, canister, cask, hod, kettle, pail, pot, scuttle, vat; concept 494 …   New thesaurus

  • -bucket — ● ash …   Useful english dictionary

  • Bucket — This article is about the physical container. For other uses, see Bucket (disambiguation). A yellow bucket A bucket, also called a pail, is typically a watertight, vertical cylinder or truncated cone, with an open top and a flat bottom, usually… …   Wikipedia

  • bucket — noun ⇨ See also ↑pail ADJECTIVE ▪ empty, full ▪ galvanized, metal, plastic ▪ leaky ▪ champagne …   Collocations dictionary

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