Research: Convexity (PrefLetter Version)

Why do I want extra yield for holding a perpetual that is priced near par? I try to explain the rationale in this essay, published as an appendix to the July, 2009, edition of PrefLetter.

There is a related essay, published in the Canadian Moneysaver of November 2007, that has also been highlighted on PrefBlog.

Look for the research link!

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