20 articles in this subtopic.
Master the mechanics of adjusting portfolio duration with Treasury futures and interest rate swaps. Learn hedge ratio calculations, DV01 matching, and overlay s…
Master yield curve trades that profit from changing spreads between short and long rates. Learn DV01-neutral positioning, historical triggers, and when each str…
Decode what Treasury markets are saying about future inflation. Learn the breakeven formula, understand TIPS pricing, and spot when the signal becomes noise.
Learn why modified duration fails for callable bonds and how effective duration captures embedded option risk. Master the calculation and avoid costly hedging e…
Why MBS prices cap gains when rates fall and extend losses when rates rise. Master the mechanics of prepayment risk and negative convexity for smarter fixed inc…
Master how barbell and bullet portfolios perform differently under parallel shifts, steepeners, and flatteners. Includes worked examples with specific return ca…
Master the key formula connecting yield changes to bond prices. Learn modified duration math, avoid common estimation errors, and stress-test portfolios correct…
Learn how to calculate forward rates from spot curves. Master the no-arbitrage formula, interpret what forward rates actually predict, and avoid the common mist…
Learn how DV01 translates percentage duration into actual dollar gains and losses. Master the formula that bond traders use to size positions and hedge risk.
Learn to read the yield curve's message about economic conditions, recession risk, and Fed policy. Master the four shapes that drive fixed income strategy.
Essential definitions for yield, duration, and convexity terms used in fixed income investing. A quick reference covering 25 key metrics from YTM to DV01.
Key rate duration measures sensitivity at specific yield curve points (2y, 5y, 10y, 30y), capturing non-parallel shift risk that effective duration misses. Esse…
Learn how to construct immunized portfolios that protect against interest rate risk. Master the mechanics of matching asset duration to liability duration with …
Learn when to use nominal yield, current yield, and YTM for bond comparisons. Master the math and avoid costly yield confusion in your portfolio.
Learn how to stress test bond portfolios using historical rate shocks from 1994, 2013, and 2022. Master parallel shifts, key rate duration analysis, and embedde…
Learn why yield to worst is your true planning yield for callable bonds, and how to avoid the costly mistake of chasing headline yields.
Convexity corrects duration estimates for large rate moves. Learn the formula, calculation, and why ignoring convexity on 100+ bps shocks creates 0.9%+ pricing …
Duration is the single number that separates bond investors who understand their risk from those who discover it the hard way. Silicon Valley Bank held $91 bill…
Master the difference between spot rates and par yields. Learn bootstrapping mechanics, pricing implications, and why using the wrong curve creates valuation er…
Learn to read and interpret duration and convexity metrics in bond fund fact sheets. Decode weighted averages, spot reporting gaps, and translate disclosed numb…
