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

Bonds are popular fixed income investment instruments and are often regarded as bearing relatively low-risk burdens. While bonds are less volatile than other investments, they are not risk-free, ...

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 ...

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 ...

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 ...

About the author: Lara Castleton is U.S. head of portfolio construction and strategy at Janus Henderson Investors. After the pain of 2022’s great interest-rate reset, investors are now benefiting from ...