Bond Market

Understanding the Emerging Risks in Bond Markets Introduction The bond market, often referred to as the debt, credit, or fixed income market, is a financial marketplace where participants can issue or trade debt securities, predominantly in the form of bonds. It plays a crucial trend-revealing role in the global economy. However, as dynamic as it …

Managing Liquidity Risk in the Bond Market Market participants perceive liquidity risk as one of the major sources of systematic risk in the bond market. Liquidity risk refers to the risk of not being able to sell your bond at a fair market price due to a lack of participants from the other end of …

Understanding Geopolitical Risks in Bond Markets Bond markets, like all financial markets, are affected by a wide array of influences. These factors range from macroeconomic indicators to policy decisions and, significantly, geopolitical risks. Understanding geopolitical risks and their impacts on bond markets can be complex. This article delves into what geopolitical risks are, how they …

The Currency Risks in International Bond Investing As a bond market professional, I understand that venturing into international bond investing can offer exciting opportunities for diversification and potential for higher returns. However, these investments come with a unique set of risks, particularly currency risk. Understanding Currency Risk Currency risk, also known as exchange-rate risk, is …

Manage Bond Market Volatility Explained Investing in the bond market is a great way for individuals and institutions alike to invest their money in a seemingly safe, predictable and reliable manner. However, as with any form of investment, it comes with its own set of challenges. One such challenge is managing the inherent volatility associated …

Managing Credit Risk in Bond Portfolios Understanding Credit Risk Before we delve into the ways to manage credit risk in bond portfolios, let’s start with a simple understanding of what credit risk is. In bond investing, credit risk refers to the possibility that the bond issuer will not be able to repay the principal and …