After a great weekend of enjoying the start of 2021’s football season, Kevin Flanagan uses the sport as an analogy for bonds and fixed income investing. On this week’s episode of the Basis Points podcast, Kevin compares protecting the quarterback on the football field to safeguarding your bond portfolio from rising rates.
Basis Points: 1/100th of 1 percent.
Duration: A measure of a bond’s sensitivity to changes in interest rates. The weighted average accounts for the various durations of the bonds purchased as well as the proportion of the total government bond portfolio that they make up.