Expert insight

Munis, Fed policy, and negative convexity

August 09, 2023

The mechanics of negative convexity
The odds of being called are key
What’s behind negative convexity’s recent reemergence?

The decline of the 5% callable bond in favor of those offering lower coupons

An opportunity for active managers to turn negative convexity into a positive
Related links:


Nathan Will, JD
Justin Ferrera, CFA
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