1. A fall in bond yields, which move inversely to bond prices, make stocks a more attractive investment compared with bonds. 2. Allowing interest rates to swing wildly meant allowing bond prices to swing wildly. 3. If interest rates fall, then the bond price will rise. 4. The systems usually involved staring for hours at charts showing the history of bond prices. 5. Usually there is an inverse relationship between bond prices and interest rate movements in the economy. 6. ...the recent sharp decline in bond prices. 7. Matrix modelling extends the multiple regression model by taking into account other factors that can influence bond prices apart from term to maturity. 8. This is interest rate risk, the risk that bond prices will fall if market interest rates rise. |