convexity negative what is
Meaning of Negative convexity explanation. What is be less than the price depreciation for a large.

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Negative convexity definition

Meaning 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

More terms such as Negative convexity in Dictionary N.

Definition National Bank:
Examples A commercial bank approved by the U.S. Comptroller of the Currency, which is required to be a member of and purchase stocks in the Federal Reserve System negative convexity definition.
Definition Negotiable Order Of Withdrawal (NOW):
Examples Demand deposits that pay interest negative convexity explain.
Definition Nominal Exchange Rate:
Examples The actual foreign exchange quotation in contrast to the real exchange rate, which has been adjusted for changes in purchasing power negative convexity what is.
Definition Net Float:
Examples Sum of disbursement float and collection float negative convexity meaning.
Definition Nonsystematic Risk:
Examples Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy negative convexity abbreviation.
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