Tags » Fixed Income

Beware of Your Program Limits

This is the second year of my Link IV Program, I have three more years left. Each week I still look into the lottery and hope Section 8 re-opens for New York. 166 more words

Shelter

Where in the world? Hunting for value in the bond market

Macro Letter – No 99 – 22-06-2018

Where in the world? Hunting for value in the bond market

Waste Not ~ Want Not

     Putting food on the table for self or for your family is paramount to your survival.  Most pantries that are available might require that you have to stand outside on a line in the street. 200 more words

Shelter

The much higher credit loss rate experienced with high-yield bonds results in an emphasis on ____ and ____ when evaluating a position.

The much higher credit loss rate experience with high-yield bonds results in an emphasis on credit risk and market value when evaluating a position.

Useful

Investment-grade bonds have lower ____ and ____ risks than high-yield bonds and are more sensitive to ____ and ____ which causes ____.

Investment-grade bonds have lower credit and default risks than high-yield bonds and are more sensitive to interest rate changes and credit migration which causes credit spread volatility.

Useful

Number of futures contracts to modify a bond portfolio duration given a cheapest-to-deliver bond value (formula)

NF = (((MDURt – MDURi) * Portfolio Value)/(MDURctd * Pctd)) * Conversion Factor

MDURt = the target modified duration for the portfolio

MDURi = initial modified duration of the portfolio… 24 more words

Level 3