What are the securities investment strategies of commercial banks?

The securities investment strategies of commercial banks include traditional securities investment strategies and modern securities portfolio investment strategies.

(1) Traditional securities investment strategy. Traditional securities investment strategies mainly include diversification strategy, effective portfolio strategy, trapezoidal investment strategy, barbell investment strategy, planned investment strategy and trend investment strategy. These methods are all put forward around the core of "minimizing risk loss and increasing income".

Diversified investment is widely used in securities investment by commercial banks. Effective portfolio method is a method to effectively combine returns and risks under the condition that the total amount of securities investment is fixed according to the general principle of dealing with the relationship between returns and risks. Trapezoidal investment method refers to a portfolio method in which banks put all investment funds on securities of various maturities evenly to maintain securities positions. Barbell investment method refers to a method by which banks mainly concentrate their investment funds on short-term securities and long-term securities to maintain their securities positions. Planned investment method means that commercial banks invest in a planned way according to their grasp of the changing trend of securities prices. Trend investment method, also known as Dow theory, once a trend is determined in the stock market, it will generally maintain a relatively stable period, so the trend investment method focuses on the main trend or long-term trend of the market.

(2) Modern portfolio investment strategy. 1952 Kyle Weitz published Asset Selection, which put forward the basic idea of modern portfolio investment theory and laid the foundation of modern investment theory. According to this theory, most investors are risk-averse, that is, they try to avoid taking excessive risks while pursuing high returns. Therefore, to manage a portfolio, we should not only pay attention to its expected return, but also measure the risks it bears. The return of securities portfolio is determined by the return of various securities in the portfolio and their proportion in the portfolio. The risk of securities can be described by the standard deviation of their returns, but the risk of portfolio should not only consider the risk of a single securities in the portfolio and its proportion in the portfolio, but also consider the correlation between the returns of every two securities.