Find out how duration and convexity measures can help fixed-income bond investors manage risks such as interest rate sensitivity within their portfolios.

Convexity measures the relationship between bond prices and bond yields, which shows how a bond’s duration changes with interest rates.

For example, the 10-year optionless bond above would rally only 4.71% if rates fell 50 basis points, but based on its tax-neutral duration and convexity at the time, an investor would expect it to ...

Bond duration is an easy, back-of-the-napkin way to estimate risk, but convexity is vital to truly understand what you're getting into with any bond purchase you don't intend to hold to maturity ...

Bond duration is used to assess interest-rate risk, ... The modified duration calculation loses accuracy when interest-rate changes exceed 1% because of an effect known as convexity.

US Bond Investors Weigh 'Convexity' Risk in Recent Treasury Yield Decline. ... This is called "negative convexity" and leaves investors with lower portfolio duration than their benchmark.

With coupon bonds, investors rely on a metric known as “duration” to measure a bond's price sensitivity to changes in interest rates. Convexity measures the curvature of the relationship ...

NEW YORK (Reuters) -The recent drop in U.S. yields has raised speculation that a wave of buying of Treasury securities and derivative products called interest rate swaps by mortgage portfolio ...