Yield Curve.
As is true for all fixed income instruments, mortgage loan market
values move inversely with interest rates, affecting both the price
(appreciation) return and the total return. For 1st quarter 2010,
the slight downward shift in the yield curve from 4th quarter 2009
levels along with market issues resulted in a positive price
return of 2.633% for the portfolio.
Formulas. LifeComps calculates total return using the Modified
Dietz methodology. Rolling four quarters figures are the compounded
latest four quarters returns.
