Definition of portfolio insurance in English:

portfolio insurance


mass nounEconomics
  • A strategy designed to protect a portfolio of investments against potential losses.

    ‘during the financial crisis, banks and other lenders substantially increased their use of portfolio insurance’
    • ‘Portfolio insurance was nothing but a method of dynamic hedging.’
    • ‘Investors are looking at gold as portfolio insurance.’
    • ‘A bomb was found on one of France's main rail lines on Wednesday, giving another reason to buy gold as portfolio insurance.’
    • ‘Dynamic portfolio insurance is a way of protecting your portfolio of shares so that if the market falls you can limit your losses to an amount you stipulate in advance.’
    • ‘When the stock market trend turned negative, portfolio insurance turned a market decline into a crash.’