Duration matters

13 November 2017

 

By guest contributor Damien McIntyre, CEO, Grant Samuel Funds Management   Duration* is a way to measure a fixed income security’s price sensitivity to interest rates – the longer the duration, the more sensitive it is to interest rate movements. For simplicity, the term bond will be used throughout this article. However, the concepts explored generally apply to all fixed income securities. Price and yield – an inverse relationship To understand duration, it’s...

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