Duration and convexity are two tools used to manage the risk exposure of fixed-income investments. Duration measures the bond's sensitivity to interest rate changes. Convexity relates to the ...

The managers’ discipline to buy bonds with better convexity profiles than plain vanilla passthroughs, or those that have more stable durations given changes in underlying yields, results in ...

Beyond trying to minimize negative convexity, the portfolio’s securitized allocation varies depending on how attractive the sector and its subsectors are to other areas of the bond market.

Oscar Wong / Getty Images Duration and convexity are two tools used to manage the risk exposure of fixed-income investments. Duration measures the bond's sensitivity to interest rate changes.