What Went Wrong Wednesday?
Part 1: Convexity

Treasury yields spiked yesterday along with yields on mortgage related bond issues and mortgage rates.

Technically speaking the spike Wednesday was driven by what is referred to in mortgage bond parlance as convexity.

I will discuss convexity in ....

By Roger Arnold On 5/28/2009

The Eye of the Storm
The US equity run in the past few months has been impressive in its swiftness, as has been the rise in long term US treasury yields.

However, neither is indicative of a change in the economic trajectory.

There has been a slight decrease in some measurements of the rate of ....

By Roger Arnold On 5/15/2009