The term structure of interest rates, also known as the yield curve, is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates of benchmark fixed-income securities, the yield curve is a measure of the market’s expectations of future interest rates given the current market conditions. Treasuries, […]

Bonds vary according to characteristics such as the type of issuer, priority,coupon rate, and redemption features. Bond prices may be either dirty or clean, depending on when the last coupon payment was made and how much interest has been accrued. Yield is a measure of the income an investor receives if he or she holds […]

How The U.S. Government Formulates Monetary Policy By Reem HeakalAAA |  A monetary policy is the means by which a central bank (also known as the “bank’s bank” or the “bank of last resort”) influences the demand, supply and, hence, price of money and credit, in order to direct a nation’s economic objectives. Following the […]

DEFINITION OF ‘CONVEXITY’ A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes. Convexity is used as a risk-management tool, and helps to measure and manage the amount of market risk to which a portfolio of bonds […]

Bond Yield Curve Holds Predictive Powers By Barry NielsenAAA |  If you invest in equities, you should keep an eye on the bond market. If you invest in real estate, you should keep an eye on the bond market. If you invest in bonds, you should definitely keep an eye on the bond market! The […]

Mandarine Gestion optimiste pour les actions européennes La baisse du pétrole et de l’euro soutiendront les profits des entreprises du Vieux continent, estiment ses gérants. Valerio Baselli16.01.2015     Pour les gérants de Mandarine Gestion, en 2015 le leadership américain va se renforcer. La chute du pétrole et le recul de l’euro profiteront aux résultats des […]

When it comes to the decision of whether you should buy or sell dollars, it all boils down to how the economy is performing. A strong economy will attract investment from all over the world due to the perceived safety and the ability to achieve an acceptable rate of return on investment. Investors always seek […]

Pour débuter l’année, nous avons regroupé un ensemble d’analyses et de commentaires de gérants, de courtiers ainsi que les vues de Morningstar. 2015, l’année du retour de la volatilité Brokers et sociétés de gestion s’attendent à un regain de volatilité cette année, sur fond de divergence des cycles économiques et des réponses en matière de […]