Modified duration shows bond price sensitivity to yield changes; a 1.859% price change per 1% yield shift. Macauley duration measures average time to receive bond cash flows, key for calculating ...

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 ...

Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, ...

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 ...

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, ...

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 ...

MBS went through an interesting Employment Friday. I know it’s hard to remember back after a long weekend (especially for N.E. fans), but the bond market sold off pretty substantially on Friday after ...

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 ...

Interest-rate risk is top of mind these days given that bond yields have risen across the board thus far in 2018. The 10-year Treasury yield hovered at 2.94% on Sept. 7, up from 2.4% at the end of ...