Corporate bonds have rarely been more popular, but their risk - as measured by duration - has...

|By:, SA News Editor

Corporate bonds have rarely been more popular, but their risk - as measured by duration - has never been higher as firms take advantage of low borrowing rates to issue plenty of longer-term debt. High duration makes a bond's value more sensitive to rising interest rates, meaning just a small move higher could wipe out gains from a year or more's coupon payments.