How and Why Bonds Make or Lose Money When Interest Rates Change

Broken Pie Chart

English - April 17, 2022 16:35 - 28 minutes - 25.8 MB - ★★★★★ - 16 ratings
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Derek Moore takes listener requests by taking a deep dive into the how and why when it comes to market values of bonds changing. How to understand what duration is and why it matters to measure risk in bonds to changes in interest rates. What about mortgage-backed bonds? Bonds can be confusing, but Derek breaks down the terms so next time you hear someone talking on CNBC you know what they are referring to.

What is a bonds duration in relationship to interest rates?

How to calculate a bonds duration.

What is negative convexity with mortgage bonds?

Why are lower coupon bonds more at risk for changes to interest rates?

Why are shorter maturity bonds less susceptible to interest rate risk?

How do cash flows from coupon payments effect bond market values?

What is the after-inflation calculation for return?

What are real returns (after inflation)

Mentioned in this Episode:

Contact Derek Moore [email protected]

Derek Moore’s Book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547?ref_=nav_signin&

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