Sep 15, 2019
It seems like lately there has been more an more talk about interest rates moving closer to zero in the U.S. So which bonds will move the most when rates move lower (or higher)? Derek talks through various types of bonds and how they are different plus see how to tell how much a change in rates can hurt or help investors holding bonds. We even touch on bond convexity!
How do interest rates change the value of a bond?
What is modified duration and how it can project a rise or fall in value?
Introduction to bond convexity
Unique aspects to U.S. Treasuries, Corporate Bonds, Municipal Bonds, and Mortgage Bonds
Callable Bond Features, Puttable Bond Features, and Convertible Bonds
How rates moving lower negatively affect mortgage bonds
Is the bond trade based on lower rates getting crowded?
How low interest rates can help companies
Mentioned in this Episode:
Podcast explaining negative yielding bonds https://razorwealth.com/wacky-negative-yielding-bonds-and-need-for-alternative-income/
Book: Broken Pie Chart https://amzn.to/31oy1hE
Razor Wealth Management www.razorwealth.com