Bond Volatility Set To Rise
An end to the Federal Reserve’s rate hike cycle and a subsequent steepening of the yield curve will increase interest rate volatility, especially at the short end of the market. An unintended consequence of higher volatility will be an increased risk of leveraged long-term bond positions.
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Commentaries — August 4, 2006
Bond Volatility Set To Rise An end to the Federal Reserve’s rate hike cycle and a subsequent steepening of the yield curve will increase interest rate volatility, especially at the short end of the market. An unintended consequence of higher volatility will be an increased risk of leveraged long-term bond positions.