FEATURES OF INVESTMENT PORTFOLIO MANAGEMENT UNDER FINANCIAL MARKET INSTABILITY
Abstract
The article examines the features of investment portfolio management under financial market instability. The relevance of the topic is determined by the fact that rising interest rates, increasing market volatility, changes in the liquidity of financial instruments, and infrastructure constraints affect the requirements for portfolio formation and rebalancing. The aim of the study is to develop a methodological approach to investment portfolio management under financial market instability based on a regime-based assessment of portfolio vulnerability. The theoretical basis of the study includes the provisions of portfolio theory, the capital asset pricing model, H. Minsky's concept of financial instability, C. Kindleberger's approaches to the analysis of financial crises, as well as O.I. Lavrushin's works on the problems of money, credit, banks, and the financial market. The methodological basis of the study is represented by comparative analysis, theoretical generalization, economic and statistical analysis, and indicator normalization. As a scientific result, the article proposes a portfolio vulnerability index and a portfolio stability coefficient. An algorithm for portfolio management under financial market instability has been developed, providing for the assessment of the market regime, verification of acceptable drawdown, liquidity, concentration, interest-rate risk, and infrastructure risk. It is shown that portfolio management in an unstable environment should be based on a combination of return assessment, stress drawdown assessment, liquidity evaluation, and analysis of the state of market infrastructure.