Bond Investment Mentor®

What Is Bond Duration?

Episode Summary

Chris explores the concept of duration, what it is, the different ways of measuring it, and the factors that drive it. He also discusses how to use duration when analyzing fixed income securities and your institution's investment portfolio.

Episode Notes

Welcome to Bond Investment Mentor! This is a podcast dedicated to helping community financial institutions master the art of fixed-income investments.

In this episode:

• Understanding Duration (1:40)
  • The two definitions of duration
    • Accounting definition (Macauley duration)
    • Portfolio management definition (Modified duration)
  • Duration as a portfolio management tool
  • 3 factors that influence duration
  • Effective duration vs. modified duration
• Latest inflation report & bond market reaction (12:32)
• Federal Reserve:  Quarles resignation (14:11)
• Review of agency MBS prepayment report (15:04)
• LIBOR transition for community financial institutions (17:13)
  • More information and OCC self-assessment tool:  BondInvestmentMentor.com/OCCLibor
• Coming Up!  Bond Investment Mentor Live Training on 11/17 (20:34)
  • More Information:  BondInvestmentMentor.com/LiveTraining

If you have questions about anything covered in this episode, please email me at Chris @ BondInvestmentMentor.com.

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You will find more articles, tips, and resources about fixed income investing and portfolio management at BondInvestmentMentor.com. Check it out!

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