Fixed Income & Rates
Bonds, yields, and the interest-rate environment that prices them.
Bonds look simple until rates move, and this topic explains both halves of the equation.
It covers the mechanics of fixed income first: how a bond pays, yield to maturity, duration and the price sensitivity it measures, and the credit ratings that price default risk.
Then it connects those instruments to the rate environment that drives them, from the policy rate set by the central bank to the shape of the yield curve.
Investing With Purpose keeps the focus on what actually changes a bond's value, so a rate headline becomes something you can act on.
Read it to understand income, safety, and the single biggest risk most bondholders underestimate.
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A bond is a loan packaged as a tradable security. The buyer lends money to the issuer, and the issuer promises to pay…
Yield to maturity is the single discount rate that equates a bond's future cash flows to its current price, assuming…
Modified duration is the percentage price change a bond will experience for a small change in its yield. It is the…
The federal funds rate is the overnight interest rate at which US banks lend reserve balances to each other. It is the…
The yield curve is the line you get when you plot US Treasury yields against their maturities, from 1-month bills out…
A credit rating is a letter grade that summarizes an agency's opinion of how likely a bond issuer is to default on its…
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