When professional investors discuss the credit market, a term that often arises is duration, which is used to measure the sensitivity of a bond’s trading price to changes in interest rates ...

Discover how negative convexity affects bond prices, key risks, and how to calculate it. Learn why mortgage and callable ...

Whether they learn it the hard way or by reading up, most bond investors know that rising interest rates undermine bond values, because investors would rather own newer bonds that pay more. That ...

Fixed-income investing doesn’t have the same glamour and round-the-clock news coverage as stock investing. There’s no such thing as a “meme bond.” Regardless, bonds are a crucial component of a ...

Bond prices are sensitive to interest rate changes, and bond duration is a measure of just how sensitive. For instance, in Exhibit 1.1 (shown in my last article), an increase in interest rates for the ...