View How Sensitive ‘Convexity’ Bonds are to Interest Rate Changes

Bond prices tend to move in accordance to changes in the overall interest-rate environment with varying degrees of sensitivity. This trait, known as convexity, represents how dramatically a bonds price will respond to a change in interest rates, given its current price point and coupon payment schedule. What’s important to recognize about this aspect of […]

Are Government Bonds Still Considered a ‘Safe’ Investment?

Investment banks have recently started to question the integrity of the US treasury markets (bond bubble). By comparing their current price points (which are particularly high given the state of their economic context) and the imbalance between the risk and reward associated with their potential ability to continue creating returns over the years, investors have […]

Are Bonds Still a Safe Investment, ‘Bond Bubble’ Coming Soon?

Bond prices have been defining the last decade of market returns as they continually escalate in an uncertain environment. While the continuing demand for ‘risk-free’ assets would be considered an essential part of the accepted market portfolio, the progression of bond markets since the 1980’s have created a situation that seems to be leading towards […]