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 ...
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 ...
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 ...
In a recent conference, I heard Nobel Prize winner Robert Engle talk about long term risk. To quote: A risk is a bad outcome which has some probability of occurring. A long-term risk is from an event ...
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 ...
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 ...
For someone who has now traded bonds professionally for over 30 years, the recent behavior of the bond market has been nothing short of incredible. For those who think of the bond market as a shelter ...
Whether you take an aggressive or conservative approach to investing, your asset allocation is likely to include some bonds. When reading about or researching bonds, you’ll hear about duration, an ...
Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more.