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🎓Bonds 101🎓
We all have been hearing a lot about bonds and yield inversions and them being a marker for recession etc etc… but what is it all really?
Complicated stuff - NOT AT ALL!
Let’s go over some quick basics to understand it all and make you a Pro, shall we?… twitter.com/i/web/status/1…
We all have been hearing a lot about bonds and yield inversions and them being a marker for recession etc etc… but what is it all really?
Complicated stuff - NOT AT ALL!
Let’s go over some quick basics to understand it all and make you a Pro, shall we?… twitter.com/i/web/status/1…
What are Bonds and how do yields move:
Bond is nothing but a Loan Certificate, you loaned $100 of your money to someone and got a certificate back stating they will pay you in so and so time (Tenure) with so and so interest (Coupon).
Now when you try and sell this Certificate/… twitter.com/i/web/status/1…
Bond is nothing but a Loan Certificate, you loaned $100 of your money to someone and got a certificate back stating they will pay you in so and so time (Tenure) with so and so interest (Coupon).
Now when you try and sell this Certificate/… twitter.com/i/web/status/1…
What is Bond Yield Inversion?
Bond yield inversion is when yield of short term bond becomes higher than yield of long term bonds.
Why it happens you ask? - It’s simple…
if demand for short term tenure bonds is higher than demand for long term tenure bonds, the price of… twitter.com/i/web/status/1…
Bond yield inversion is when yield of short term bond becomes higher than yield of long term bonds.
Why it happens you ask? - It’s simple…
if demand for short term tenure bonds is higher than demand for long term tenure bonds, the price of… twitter.com/i/web/status/1…
