Understanding Duration Risk in a Multi-Asset Portfolio
Duration is a useful lens for understanding rate sensitivity, correlation and portfolio risk. Duration measures a bond portfolio's sensitivity to changes in yields, but its portfolio impact depends on correlation with equities, inflation and real rates. Duration that diversifies in one regime can amplify losses in another.
Why it matters for portfolios
Duration should be sized by its contribution to total portfolio risk, not by the bond allocation alone.
What to watch
duration contribution, real yields, curve shape and stock-bond correlation
This article is for educational purposes only and does not constitute investment advice.