What is Portfolio Duration?
Portfolio Duration A weighted average measure of the sensitivity of a fixed income portfolio’s price to changes in interest rates, typically expressed in years; critical for interest rate risk management and regulatory reporting.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Portfolio Duration” Used in Practice?
A portfolio duration of five years indicates the portfolio will lose approximately 5% of its value if interest rates rise by one percentage point.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Portfolio Duration” Free with Termify
Master Portfolio Duration and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Portfolio Duration?
A weighted average measure of the sensitivity of a fixed income portfolio’s price to changes in interest rates, typically expressed in years; critical for interest rate risk management and regulatory reporting.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Portfolio Duration and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: