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Broken Pie Chart


Apr 17, 2022

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 derek.moore@zegafinancial.com

 

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

 

Tips Treasury Inflation Protection securities | Interest Rate Risk and Duration https://brokenpiechart.libsyn.com/tips-inflation-protected-bonds-explained-interest-rate-risk-duration-and-more-with-marcel-benjamin

 

Senior Loans and Leveraged Loans explained https://brokenpiechart.libsyn.com/dan-mcmullen-talks-senior-loans-leveraged-loans-clos-and-more

 

High Yield Bonds Explained plus what zombie companies are https://brokenpiechart.libsyn.com/marcel-benjamin-high-yield-bonds-explained-what-are-zombie-companies