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 ...
Bond duration describes the average time period before all the cash flows are received from a bond. Most importantly, it defines how the bond's price will change with increases or decreases in ...
Modified duration measures price sensitivity to interest rate changes. The calculation for modified duration is relatively straightforward. Modified duration is important for investors in determining ...
It's time for conservative, older investors to start thinking about their bonds. Indeed, bonds aren't an exhilarating asset class. Whenever you hear about action in the bond market, it's often about ...
A version of this article was published in the November 2015 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here. Flaw of Averages Duration, by itself, is a crude ...
The new era of higher interest rates has reignited a long-smoldering Wall Street debate: Is it better for ordinary investors to buy individual bonds outright? Or shares of bond mutual funds? During ...
The iShares 20+ Year Treasury Bond ETF offers easy access to long-duration U.S. government bonds, providing diversification and a historically strong credit profile for income-focused investors.