What is the beta and alpha for bond
hey guys, I know what is beta and alpha for equity, but what is beta and alpha for fixed income?
very curious, seldom saw relevant information.
And I always heard trader said high beta bond or low beta bond, so what is that mean as well?
if you are talking about equity beta, you can get it the same way as for a stock - run a regression of the % price changes against each other. for this a treasury bond should have a low negative beta, a corporate bond should have a beta between 0.4-0.8 roughly
if you are asking what the equivalent concept is, in bonds it would be the duration
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