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Harley Bassman on Bond Market Dynamics, Derivative Strategies, and Long-Term Interest Rate Trends

Lead-Lag Live

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Navigating Mortgage Bonds and Market Dynamics

This chapter explores the complexities of mortgage-backed securities (MBS) and their interactions with the broader bond market, including historical pricing discrepancies and effects of interest rate fluctuations. It highlights the challenges faced by retail investors, the impact of demographic shifts on economic trends, and the implications for home purchasing and generational wealth transfer. Additionally, the discussion emphasizes investment strategies in bond markets, focusing on risk management and the importance of understanding duration, credit, and convexity.

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