Was it not commonly discussed here before the great bond implosion of 2022 that for every 1% increase in interest rates, a bond price drops by 1% for every year of duration? So, in this case, the average duration of BND is 6-7 years which means you would have expected a 6-7% decline for every 1% increase in rates. Seems like when that happens (rates rise), it would be no surprise; it should have been a known risk.
Statistics: Posted by TimeIsYourFriend — Tue Jan 16, 2024 6:27 am — Replies 25 — Views 954