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Rate Duration
Definition
This is a bond's sensitivity to a change in a key maturity while holding all other key rates along the curve constant.
Using the term Rate Duration :
The portfolio manager wanted to isolate one key maturity in his clients portfolio while holding everything else constant in order to determine the risk apparent in that one key rate.
Pay Special Attention To :
Ensure that the manager's risk management discipline looks outside of the numbers and that the whole market picture is being factored into the scenario.
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Related terms
Key Rate Duration , Bonds , Portfolio Management
'Rate Duration' appears in these other terms:
Key Rate Duration
