An AHP-based Decision Support Model for Corporate Bond Selection and Investment Analysis

摘要

This paper explores the use of an intuitive decision support model for evaluating and selecting corporate bonds. The model is based on the Analytic Hierarchy Process (AHP), which enables an individual investor and a portfolio manager to identify the relative impacts of multiple criteria derived from the assessment of a particular investment environment. It also allows the pairwise comparisons of several corporate bond alternatives with respect to each of the pre-determined criteria. In particular, the evaluation process can capture individual investment behavior and perceptions on different decision criteria and corporate bond alternatives. Therefore, the model can be customized to facilitate corporate bond selection and fixed income investment analysis.