Category Rates

Bond Skewness in Portfolios

Skewness measures the asymmetry of return distributions, influencing investment risk-return profile, making it an essential statistical tool for portfolio management. Equity returns exhibit a negative skew, whereas Bond returns exhibit a neutral or slightly positive skew. However, there are certain…

Golden Rule for bond portfolio duration

Bond markets are forward-looking, pricing in expected monetary policy moves. Surprises occur when a central bank’s actions or communications deviate from these expectations. These banks significantly impact bond prices and returns as the market reprices bonds based on new, unexpected…