O'Reilly logo

The Handbook of Fixed Income Securities, Eighth Edition, 8th Edition by Steven V. Mann, Frank J. Fabozzi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTERTHIRTY-EIGHTEMPIRICAL YIELD-CURVE DYNAMICS AND YIELD-CURVE EXPOSURE

WESLEY PHOA, PH.D.

Senior Vice PresidentCapital International Research, Inc.

While there are many factors that can influence the yield on a specific bond, one of the most important driving factors—especially for high-quality bonds—is the behavior of the benchmark (Treasury) yield-curve. Individual bond yields tend to move along with the yield-curve. For example, if the 10-year Treasury yield moves up or down, other bonds with maturities close to 10 years will tend to follow suit. Thus, the return on a bond portfolio is linked to movements in the Treasury yield-curve: as the yield-curve moves up and down (or tilts or changes shape in more complicated ways), the bonds in ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required