Positive convexity

• A property of option-free bonds whereby the price appreciation for a large upward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change in interest rates.

 Embedded terms in definition
Interest rate
Price appreciation
 Related Terms
Effective convexity
Extraordinary positive value
Negative convexity
Positive carry
Positive covenant of a bond
Positive float
Positive yield curve

<< Positive carry Positive covenant of a bond >>

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