Discover how negative convexity affects bond prices, key risks, and how to calculate it. Learn why mortgage and callable bonds often show this trait.

What Are Duration and Convexity? 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.

VTC offers broad, investment-grade corporate bond exposure with a low expense ratio, but is overweight BBB credits and has a 6.7-year duration. Current credit spreads and rates are not attractive for ...