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Negative convexity

• A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points.

 
 Embedded terms in definition
 Appreciation
Basis point
Basis
Bond
Change
Depreciation
Price appreciation
Will
Yield
 
 Related Terms
 Convexity
Effective convexity
Negative amortization
Negative carry
Negative covenant
Negative duration
Negative leverage
Negative pledge clause
Negative yield curve
Positive convexity

<< Negative carry Negative covenant >>

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