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 ...

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 ...

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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...