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 ...
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 ...
Duration management has been a very powerful tool in terms of generating alpha. But going forward, we think being nimble is going to give you your real edge. We think shorter-dated Treasuries can ...
Question: Morningstar analysts often define duration as a "measure of sensitivity to interest rates." What exactly does this mean? Answer: This is a timely question, with the Fed signaling that it ...
Vanguard Long-Term Bond Index Fund ETF Shares offers diversified exposure to long-duration, investment-grade US government and corporate bonds with a low 0.03% expense ratio. BLV is highly sensitive ...