At the Money: Managing Bond Duration

Masters in Business

Bloomberg

Business, Entrepreneurship, Investing

4.4 • 2.2K Ratings

🗓️ 11 September 2024

⏱️ 15 minutes

🔗️ Recording | iTunes | RSS

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Summary

How should investors manage bond duration in an era of rising – and soon likely falling – interest rates?

The challenge is that the longer the duration your bonds are, the higher yield usually is, but the more vulnerable those bonds are to rising rates. When rates fall, long-duration bonds go up (shorter duration much less). There are many ways investors can take advantage of changing interest rates. For more on the subject, Barry Ritholtz speaks with Karen Veraa, Head of iShares US Fixed Income Strategy at BlackRock.

Each week, “At the Money” discusses an important topic in money management. From portfolio construction to taxes and cutting down on fees, join Barry Ritholtz to learn the best ways to put your money to work.

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Transcript

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0:34.4	Podcasts, Radio News.
0:37.2	Time is on my side.
0:41.2	It is. is on my side.
0:43.0	How should investors?
0:45.0	Time is on my side.
0:50.0	Yes it is.
0:52.0	How should investors manage bond duration in an era of rising and likely soon
0:58.9	falling interest rates? The challenge? long duration bonds lose value when rates go up.
1:06.0	Shorter duration bonds can also lose value, but far less.
1:10.0	What happens when the reverse occurs, when rates falls? Well, the value of long
1:14.4	duration bonds go up. Shorter duration go up but less. As it turns out, there are many
1:20.5	ways investors can take advantage of changing interest rates.
1:25.6	I'm Barry Ritholtz and on today's edition of At The Money, we're going to discuss how to
	...

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