convexiteitsrisico
Convexiteitsrisico, also known as convexity risk, is a financial risk that arises from the non-linear relationship between the price of a bond and changes in interest rates. This risk is particularly relevant for bonds with longer maturities, as their prices are more sensitive to interest rate changes compared to shorter-term bonds. Convexity risk is a measure of the sensitivity of a bond's duration to changes in interest rates. It is calculated using the second derivative of the bond's price with respect to interest rates, and is expressed as a percentage.
Convexity risk is important for investors and financial institutions to manage, as it can significantly impact
To mitigate convexity risk, investors can use various strategies, such as duration matching, where they match
In summary, convexity risk is a financial risk that arises from the non-linear relationship between the price