Fixed Income Strategies
Everything about duration: Convexity
How a bond’s price responds to changes in interest rates is measured by its duration but its limitation is that it incorrectly assumes a linear relationship between bond prices and yields.
Everything about duration: Interest rate risk
Two of the key risks in fixed income investing are credit risk and interest rate risk. Changing interest rates are very important to bond investors as there is a close but inverse relationship betwee ...
Everything about duration: Yield shifts
Yield curves plot interest rates (‘yields’) of bonds of equal credit rating and different maturities.