Bonds and Interest Rate Risk
This week’s video update covers the following topics:
- How bonds generate income and return principal at maturity
- Why bond prices fall when interest rates rise
- How duration measures a bond’s interest-rate risk
- The roles of the yield curve, credit quality, and diversification
- Why DWM currently favors shorter-duration, primarily U.S. fixed income
- DWM’s outlook for modestly higher interest rates amid inflation pressures
Link to the video is here: https://destinationwm.wistia.com/s/q7r03mzz5baimhg