It’s a record: More people than ever before are betting that rates will rise

It’s a record: More people than ever before are betting that rates will rise

Derivatives are a popular way for professional investors to manage duration. A bond’s duration indicates how sensitive it is to changes in interest rates — the longer the duration, the higher the sensitivity. So when investors expect rates to rise (as many people do right now), they aim for a shorter duration bond portfolio. There […] …