This course takes an in-depth look into the systematic market factors that drive bond price volatility.
This advanced course provides a deep dive into the systematic market factors that drive bond price volatility. Starting with the structure and behavior of the Treasury yield curve, you'll explore key yield curve movements and their implications for bond valuation. The course then examines bond risk premia and their relationship with the Treasury curve, including the impact of embedded options in corporate and mortgage-backed securities.
Through detailed analysis and practical examples, you'll learn how optionality influences expected cash flows, bond values, and return—especially under conditions of negative convexity. A historical review of spread changes, particularly during times of market stress, provides context for understanding real-world bond behavior. The course concludes with a portfolio-level perspective, showing how to apply these insights to create diversified, efficient bond portfolios tailored to varying risk levels.
Investment Consultant, Author and Mentor
I have a long record of success in client-centered investment management, with experience in all phases of the investment process: analytics, research, asset allocation, investment selection, performance evaluation and communicating results that are relevant, robust and understandable. I have managed bond portfolios for insurance companies and multi-asset portfolios for endowments, foundations, pension plans and high-net worth individuals. This experience has helped me develop a holistic perspective focused on helping clients to achieve a secure financial future. Using this perspective, I have helped to transform several investment organizations from followers to leaders in the industry, who now measure success in terms of their clients’ financial outcomes, rather than simply beating benchmarks. I have also dedicated myself to mentoring and training investment staff, many of whom have moved their careers forward as a result of this training. For over a decade I was an adjunct faculty member for a university MBA program, and an instructor for investment professionals taking the Chartered Financial Analyst (CFA) exams. Toward this end, I have published many articles, both in public investment journals, with the CFA Institute and also on LinkedIn. This has allowed me to advance the body of knowledge within the industry. I believe that trustworthiness, diligence and capability are essential values for those who take responsibility for client assets.
