Posts Tagged: bonds

DV01 is another measure of bond price sensitivity. DV01 is the monetary change in bond price for 1 basis point change in interest rates (by default it is usually expressed as price change for 1bp increase in interest rates). There can also be DV01’s for credit spreads (sometimes referred to as CR01) and inflation rates…. Read more » Read more…

Following my last blog on people complaining about hedge funds shorting Greek bonds, the Economist expressed exactly my sentiments (though better of course) in their leader pages. How can you sell if no one buys? If someone buys willingly, then why should they complain when they lose money? It is the risk they take. There was similar foolish complaint about Read more…