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, ...
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 ...
Key rate duration measures a bond's sensitivity to shifts in interest rates at specific maturity points along the yield curve ...
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 ...
Interest rates and bond prices exhibit an inverse relationship: when interest rates increase, bond prices decrease, and when rates decrease, bond prices increase. This occurs because newly issued ...
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 ...