Sentences with phrase «extra duration risk»

Not exact matches

I've learnt recently (thanks to Investing Intelligently and Efficient Market Canada) that bond investors should keep fund duration as short as possible because longer - term bonds offer little extra return for taking a higher interest - rate risk.

The important point is this: as the duration of indexes increases and as credit quality decreases, the expected long - term return of a bond index increases to compensate for those extra risks.