the study of convexity parameters – concepts that extend the classical notion of convexity to graphs – has emerged as a pivotal tool in understanding the underlying structure and complexity of ...

Duration is the primary measure of interest rate sensitivity — it is the percentage change in price for a 1% change in interest rates. However, practitioners also look at convexity, which is the ...

As illustrated in the convexity graph earlier, there is exposure at both tail ends in the form of call and put options on SPX, the S&P 500 index. The majority of the fund invests in an ETF (IVV ...

Convexity hopes to correct the disparity between bond prices and interest rates, and it achieves this by accounting for any effect that interest rates can have on the bond’s duration. The below graph ...