Fixed Income and volatility yields
On page 89 it says:
Usually, yields on high-quality corporate bonds are less volatile than on more-liquid Treasuries. Government bonds are used ina wide variety of hedging as well as speculativce trading strategies.
I don’t get this. Why and how are corporate bonds less volatile than more-liquid treasuries. I always thought governemnet notes would have the least volatility.
Thanks. Much appreciated.
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