Real Talk About Bond Convexity


It’s not every day that I get an email out of the blue that completely blows my mind, and I have to admit my head is still spinning. Recently I was approached by the team at Cambria to let me know that one of my articles had been selected for Volume 4 of Meb Faber’s “The Best Investment Writing” series. To say it’s an honor doesn’t really do it justice. I’m incredibly excited to have made the cut, and truly humbled to be featured among so many investing heavyweights I admire. Thanks, Meb!

The article in question is one of my personal favorites: High Profits At Low Rates: The Benefits of Bond Convexity. Beyond the unique topic, I like that it captures a lot of what Portfolio Charts is all about — sophisticated financial concepts explained in a way that normal people can understand. And in the spirit of that effort towards communication, I also got to try something a little different to mark the occasion.

Do you like podcasts? The Meb Faber Show is a great one. And starting today, you may notice there’s a new episode on the list where I personally narrate the bond convexity article. I may be a total rookie at voice recording, but I think it went pretty well.

The Best Investment Writing Volume 4: Tyler, Portfolio Charts – The Benefits of Bond Convexity

Before you take off to listen to the episode, I’d like to take just a moment to briefly address the two different audiences browsing the site right now:

  • For all the Meb Faber fans visiting Portfolio Charts for the first time, welcome! There’s a ton of interesting portfolio data and lots of articles to explore, but allow me to point out one page I think you’ll find particularly interesting. Since there’s a pretty good chance you’ve read Meb’s book about the Ivy Portfolio, follow that link and you’ll find an entire section dedicated to backtesting every investing timeframe since 1970. From the full spread of inflation-adjusted returns to the worst-case safe withdrawal rates, there’s lots of detailed information to help guide your own financial plan.
  • For the Portfolio Charts fans listening to an audio version of the blog for the first time, please let me know if this is something you’d like to see more of. I’m always looking for ways to improve the site, and I’m open to new types of content that people find particularly interesting. So if you like the podcast format or have a suggestion for something even better, speak up!

Since the exciting action is elsewhere today, let’s keep this post short and sweet. Find a comfortable spot to relax for a few minutes, fire up the bond convexity episode, and take the opportunity to learn about an important financial concept many people don’t fully understand. And while you’re at it, be sure to browse the other excellent content both originated and curated on Meb’s blog. I write because I’m passionate about financial education, and the best part about all of this is to simply be a part of the greater community of worthy contributors. Dive right in, and I’m confident you’ll learn something new.

A good podcast is best enjoyed over coffee.