Many investors saw a rise in rates causing negative returns on bonds in Q1 of 2021. Many were surprised. How is risk heightened due to low interest rates? Duration vs Maturity in understanding bond rate risk. Plus, how have US Treasuries performed by decade.

 

 

10 Year US Treasury Returns by Decade

Duration vs Maturity to Determine Interest Rate Risk

Coupon Payments Time to Capture Principle

Call Provisions in US Treasuries?

Comparing different 30 Year Treasuries Current Market Value

Decade by Decade Comparison of Total Return on 10 Year US Treasuries

More risk with low yields

How much more negative can bond yields go?

 

 

Mentioned in this Episode:

 

Marcel Benjamin on High Yield Bonds https://directory.libsyn.com/episode/index/show/brokenpiechart/id/18776195

 

Trouble with Treasuries: Bonds have one of worst starts to year since… https://zegafinancial.com/blog/us-treasuries-third-worst-start-to-year-since-1830-market-reaches-new-highs-while-many-big-names-in-correction-territory

 

Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr