Dry Powder: Where to Park Your Cash
Many Happy Returns
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Should I Hedge My Bonds?
Bonds freeze in a rate. Think of it like amber where you freeze a mosquito or something into the amber. That's the way to think of a bond. It freezes in the shape of the yield curve when it's issued. And it keeps that for the entire lifetime of the bond. So those low coupon bonds were ones which were issued before rates started to rise. Exactly. Now, if you're worried about a particular country's yield curve spiking upwards, well, if you diversify, you're not so worried about that. If you've got exposure to the US yield curve, the UK yield curve, then develop markets generally, that will probably be less volatile than just one
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