How to Gauge the Interest Rate Sensitivity of Bonds and Bond Funds

interest rates

By Matt Tucker, CFA iSharesBlog.com Today I want to take a step back from the markets and talk about one of the fundamental concepts in fixed income investing: interest rate sensitivity.  Namely, what happens to the price of a bond or bond fund … [Read more...]

Agency Mortgage Backed Securities (MBS) – US Govt Bonds That Yield Double or Triple Treasuries

agency mortgage backed securities

Agency mortgage backed securities are bundles of mortgages which are packaged together as one instrument and sold like a bond.  The payments from all the individual mortgages are then distributed to the holder of the agency mortgage backed … [Read more...]