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Investing in mediocrity

Planet Money

Investing in Mortgage Bonds and Rolling Down the Curve

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Aaron and his research body built a fake portfolio of what the performance would have been from simply buying more debt of riskier companies, buying more mortgage bonds and rolling down the curve. They mush those three things together, they add in a little bit to account for the overall direction of interest rates,. And tracked the mushed together portfolio through time to see how those factors performed.

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