In many ways, bonds are more complex than stocks. Investors use a host of different metrics to evaluate bond investments, and one involves a concept known as duration, which helps an investor ...
Hear ‘bonds’ and multiple terms spring up in your mind. While the list of bond-related terminology is long, here we talk about the concept of modified duration. Among the most important factors ...
Modified duration measures a fund’s sensitivity to changes in interest rates assuming no changes in expected cash flows, making it most applicable to option-free bonds; the longer the duration, the ...
Choosing debt funds in a rising interest rate environment is not easy, as rising rates lead to declines in bond prices. Make the wrong choice of duration and you can easily face capital erosion on ...
The European Banking Authority published final Guidelines on the correction required for the calculation of Modified Duration for debt instruments subject to prepayment risk under the Capital ...
A recent action by RBI on the interest rates has caused havoc in the debt market. There are funds which has less impacted and some are more. From a layman investors view selecting a debt fund becomes ...