What does the Federal Reserve's policy rate cut mean for our portfolios? Will interest rates keep falling? What changes should we make? Topics covered include: What determines interest rates, and where are those drivers currently What is the best estimate of bond returns How duration works and why it changes What are some current fixed income investment options Show Notes Asset Camp FedWatch—CME Group Summary of Economic Projections—US Federal … [Read more...]
324 Plus: Currencies, Bond Convexity, and Support Levels
In Plus episode 324, we discuss a new investor's question on how the currency can impact an investment's return. We explore bond duration and convexity and why the duration for bonds increases as interest rates fall. Finally, we consider support and resistance levels for stocks and whether they have any merit. … [Read more...]
249 Plus: Mid Month Update, More on Options, and a Bond Duration Review
In Plus episode 249 for the week of April 20, 2019, we review market conditions as of mid April including performance, recent economic releases and what needs to happen for the market rally to continue. We also continue our discussion from Plus Episode 246 in analyzing the CBOE WisdomTree CBOE S&P 500 PutWrite Strategy Fund including the discussion of delta, notional value and why the strategy might be used. Finally, we review the concept of duration and price changes for bonds fund … [Read more...]
225: How To Invest In Bonds and Other Fixed Income Securities
How to evaluate interest rate risk, credit risk and other factors when investing in bonds. Photo by Wes Hicks In this episode you’ll learn: What determines interest rates.What determines the performance of fixed income investments.How to estimate the return of fixed income holdings.The tradeoff between owning individual bonds or bond funds/ETFs Show Notes Eaton Vance Bank Loan Chart Book Annual Default Study: Corporate Default and Recovery Rates, 1920 - 2017 - … [Read more...]
