[Verse 1] When interest rates shift up and down the line Not every point moves the same each time Parallel shifts are just too simple to assume Key rate duration shows what really moves The yield curve bends at different spots Short term, medium, long term lots Each maturity has its own effect On portfolio values we protect [Chorus] Key rate duration, point by point Measures the risk at every joint When two year rates go up or down What happens to your bond's value now Key rate duration, don't assume Every rate moves in the same room Specific sensitivity is the key To managing risk more accurately [Verse 2] Complex portfolios need deeper analysis Than simple duration paralysis Corporate bonds and mortgage securities Have different rate sensitivities Break down the curve into segments clear See which maturities cause the fear A steepening curve affects different ways Than flattening moves on trading days [Chorus] Key rate duration, point by point Measures the risk at every joint When five year rates go up or down What happens to your bond's value now Key rate duration, don't assume Every rate moves in the same room Specific sensitivity is the key To managing risk more accurately [Bridge] Sum up all the key rate parts That's where total duration starts But knowing where each impact lies Helps you hedge and optimize Portfolio managers need to know Which rate changes make values go Up or down at every turn Key rate duration helps you learn [Chorus] Key rate duration, point by point Measures the risk at every joint When ten year rates go up or down What happens to your bond's value now Key rate duration, don't assume Every rate moves in the same room Specific sensitivity is the key To managing risk more accurately [Outro] Point by point along the curve Key rate duration helps preserve Your portfolio from rate surprise Specific risk you recognize
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