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PORTFOLIO RISK

Portfolio Duration

Aggregates duration exposure across a fixed-income portfolio.

Formula

D_p = Σ(w_i D_i)

Variables: Market-value weights; instrument durations

What it means

Aggregates duration exposure across a fixed-income portfolio.

Example

A 60/40 portfolio of durations 5 and 2 has portfolio duration 3.8.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.