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 Net Sales Transaction:
- Examples counter trading. Securities deal in which the quoted prices include commissions (i.e., OTC); looked at another way, the buyer and seller do not pay fees or commissions in addition to the print or negative convexity definition.
- Definition Narrow Market:
- Examples An inactive market, which displays large fluctuations in prices due to a low volume of trading negative convexity explain.
- Definition No-Action Letter:
- Examples A letter from the Securities and Exchange Commission agreeing that the commission will take no civil or criminal action against a party, regarding a specific activity negative convexity what is.
- Definition Nominal Yield:
- Examples The income received from a fixed income security in one year divided by its par value. See also: Coupon rate negative convexity meaning.
- Definition No-Par-Value Stock:
- Examples A stock with no par value given in the charter or stock certificate negative convexity abbreviation.
