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 ...

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 ...

In a few recent columns, we’ve talked about duration and convexity in the context of changing market prices. They are some of the most misunderstood and misused terms in finance, and clarifying them ...

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 ...

What Is Key Rate Duration? Key rate duration is a measure of bond price sensitivity to changes at different points along the yield curve. As opposed to effective duration, which looks at changes in ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and ...

When the function of a camshaft(s) is explained to non-mechanically-inclined types, it's sometimes referred to as the "brain" of an engine. Most engines will live their entire lives with the stock cam ...

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 ...