Not exact matches
«The credit
quality, this
move up in
interest rates, this loss of a four - decade uptrend in bonds, downtrend in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across in the last couple of decades,» said Gordon.
The NAV (net asset value) of a bond fund will
move up or down based on a number of factors such as changes in
interest rates, credit
quality, and currency values (for international bonds) for the different bond holdings in the fund.
Many bond managers like to own RMBS for its high credit
quality, liquidity, and attractive yields, but the problem is this: when
interest rates move, the RMBS does what you don't want to see happen.