>decided to go the conservative way and buy bonds. Just because government bonds are unlikely to default, that doesn't make acquiring them "conservative". If y

>decided to go the conservative way and buy bonds. Just because government bonds are unlikely to default, that doesn't make acquiring them "conservative". If you're a bank, with an entire function dedicated to making sure that assets match liabilities ("treasury"), and that ought to be aware of things like "DV01" and "duration risk", then you're supposed to know this.