Home > Term: negative convexity
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. For example, a fixed-rate mortgage may lose value as rates go down because of prepayments.
- Besedna vrsta: noun
- Industrija/področje: Financial services
- Category: General Finance
- Company: Bloomberg
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