Hannelore Foerster Bloomberg Duration: Also, the sensitivity of a bond price to changes in its yield, according to Bloomberg. Over the past couple of weeks, investors in German government bonds have received a crash course in "duration," a geeky concept that is nevertheless a driving force in fixed income. Photographer: Hannelore Foerster/Bloomberg Duration: d o͝orˈāSH n/ Noun -- The time in which an event takes place. Buying longer-dated bonds with longer duration has been a popular strategy for investors seeking higher returns in an era of low interest rates. When they go up, the price of bonds with a greater duration will fall a lot more than that of shorter-dated debt. It can be risky, given that such debt is extremely sensitive to changes in interest rates and yields.
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