Advertising

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 >>

What Happens If a Bank Fails?: How the FDIC protects depositors, including providing quick access to insured funds. More...

The game of life is to come up a winner, to be a success, or to achieve what we set out to do. Yet there is always the danger of failing as a human being. - Richard Milhouse Nixon

Advertising



Copyright 2009-2018 GVC. All rights reserved.