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Duration is a fundamental financial concept, but it’s more part of the fixed income investor toolkit than the equity investors’. For reasons I’ll get into, duration is usually a misleading concept for equity investors, but there are a few cases where that’s changing.

Duration in bond investing refers to two different measures, which are, conveniently, measured roughly the same way:

  1. The weighted average time in the future at which a bond pays its returns — i.e. the number of years from now when you’ll realize half of the net present value of the bond, and
  2. A bond price’s sensitivity to changes in interest rates, all else being equal. …


A fleet of Delta Airlines jets parked at the Southern California Logistics Airport (SCLA) due to decreased air travel.
A fleet of Delta Airlines jets parked at the Southern California Logistics Airport (SCLA) due to decreased air travel.
A fleet of Delta Airlines jets parked at the Southern California Logistics Airport (SCLA) due to decreased air travel in Victorville, California. Photo: David McNew/Stringer/Getty Images

More than six months after the World Health Organization first declared Covid-19 a pandemic, airlines are barely limping along. The TSA’s daily passenger count tracker currently shows that air travel is down about a staggering 70% from last year. …


Venmo logo displayed on a smartphone.
Venmo logo displayed on a smartphone.
Photo: Rafael Henrique/SOPA Images/LightRocket/Getty Images

The Covid-19 crisis shifted a large portion of American retail online virtually overnight, but the gradual post-pandemic reopening has led to an interesting second shift: Online payment companies have started moving offline. …

About

Byrne Hobart

I write about technology (more logos than techne) and economics. Newsletter: https://diff.substack.com/

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