Gold and Long Duration Bonds are often compared for their diversification benefit. In this note I explore whether the ...

Overview:   Medium-duration funds offer stable returns with moderate risk for long-term goals.Funds from SBI, DSP, and ...

Duration is the primary measure of interest rate sensitivity — it is the percentage change in price for a 1% change in interest rates. However, practitioners also look at convexity, which is the ...

Still, more than once I've had clients balk at the idea of investing in bonds, offering the explanation, "They don't return as much as stocks." That's where it becomes the financial advisor's job to ...

A bond’s price is affected by various factors like credit quality of the issuer, callability of the bond, coupon rate, and maturity. Duration, in effect, takes into account all these factors while ...

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 ...

In a few recent columns, we’ve talked about duration and convexity in the context of changing market prices. They are some of the most misunderstood and misused terms in finance, and clarifying them ...

The 2008 financial crisis and the resulting market shocks had a number of surprising consequences. One that was particularly important to bond investors was the degree to which diversified bond funds ...

Interest-rate sensitivity, credit risk, and exposure to the yield curve are three of the biggest factors that have an impact on a bond's price. As a measure of interest-rate sensitivity, duration ...