# Risk Management Framework We aim to deliver consistent, risk-adjusted returns by tracking and managing liquidity risk, credit risk, and price risk across the underlying Asset Pool ### Liquidity Risk * Maintain minimum 80% allocation to liquid, freely tradable bonds (ie. capping illiquid private credit positions to 20% of the Asset Pool) * Significant portion allocated to Investment Grade bonds that exhibit lower volatility * Credit lines available with our prime broker to have access to fast liquidity while managing the selldown of the underlying bonds ### Credit Risk * Target blended portfolio rating of BBB or higher * Ongoing monitoring of credit events of all positions, with periodic assessment of the ratings drift of the overall portfolio * Restrict Private Credit deals to co-investments with other reputable lenders to mitigate counterparty risk ### Price Risk * Manage duration to average of 5, limiting adverse mark to market impacts of changes in rates * Maintain maturity ladders and staggered bond durations to ensure regular cash flows without forced selling * Active management strategy to take profit during times of portfolio outperformance --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.mudigital.net/mechanics/risk-management-framework.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.