2007 - April
2007 - April
2007 - April
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
1.0<br />
Management report<br />
Interest rate risk:<br />
APRIL GROUP’s portfolio is made up primarily of bonds and<br />
bond UCITS, and is therefore exposed to an interest rate<br />
risk. More specifically, this concerns a fair value impairment<br />
risk for fixed-rate bonds and a cash-flow risk on coupons for<br />
variable-rate bonds. The following table presents the portfolio’s<br />
interest rate risk exposure at December 31 st , <strong>2007</strong> by maturity:<br />
INTEREST RATE EXPOSURE BY MATURITY (In thousand euro) < 1 year < 2 years < 3 years < 4 years < 5 years > 5 years TOTAL<br />
Bonds exposed to fair value risk 28,268 19,881 12,073 24,567 10,175 45,753 140,717<br />
Bond UCITS exposed to fair value risk<br />
Derivative assets exposed to fair value risk<br />
Other financial assets exposed to fair value risk<br />
Financial instruments exposed to fair value risk 28,268 19,881 12,073 24,567 10,175 45,753 140,717<br />
Bonds exposed to cash-flow risk 2,628 1,378 5,447 2,974 25,222 37,649<br />
Bond UCITS exposed to cash-flow risk<br />
Derivative assets exposed to cash-flow risk<br />
Other financial assets exposed to cash-flow risk<br />
Financial instruments exposed to cash-flow risk 2,628 1,378 5,447 2,974 25,222 37,649<br />
PORTFOLIO TOTAL 30,896 21,259 12,073 30,014 13,149 70,975 178,366<br />
% 17.3% 11.9% 6.8% 16.8% 7.4% 39.8% 100.0%<br />
Credit risk:<br />
APRIL GROUP is exposed to a credit risk through the issuers<br />
of bonds held in its portfolio. However, this risk is limited<br />
thanks to the stringent selection of issuers (over 90% of<br />
bond assets are issued by at least A-rated companies).<br />
The table opposite presents a breakdown of the bond<br />
portfolio at December 31 st , <strong>2007</strong> by issuer rating:<br />
CREDIT RISK EXPOSURE<br />
BY ISSUER RATING (1)<br />
(In thousand euros)<br />
N.D. AAA AA A+ to A-<br />
BBB+ to<br />
BBB-<br />
< BBB- TOTAL<br />
Credit-risk exposed bonds 1,003 78,913 28,766 53,718 15,966 178,366<br />
Credit-risk exposed<br />
bond UCITS<br />
TOTAL BOND PORTFOLIO 1,003 78,913 28,766 53,718 15,966 178,366<br />
% 0.6% 44.2% 16.1% 30.1% 9.0% 100.0%<br />
58<br />
Return to the contents section