@roboquant: In February 1994, Alan Greenspan raised rates by 0.25%. A surprise. By end of year: 7 rate hikes. 3% to 6%. Bond markets lost 1.5 trillion dollars in value. Worst year for bonds since 1927. Orange County bet 7.4 billion dollars on rates staying low — with 3x leverage. They went bust. The lesson: when rates rise, bond prices fall. The longer the duration, the bigger the loss. #BondMassacre #1994 #FederalReserve #InterestRates