Negative duration

 

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Negative duration

Occurs when the price of an MBS moves in the same direction as interest rates.



Negative duration

Similar Matches

N Negative Amortization

N Negative Amortization

A condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases.


Negative externality

Negative externality

A harmful externality; that is, a harmful effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to curtail their action. Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality).


Negative NPV tie in project

Negative NPV tie in project

A negative-NPV infrastructure development project that a local government requires of a company engaged in a positive NPV investment project elsewhere in the country.


Negative covenant

Negative covenant

A bond covenant that limits or prohibits certain actions unless the bondholders agree.


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.


Further Suggestions

Negative pledge clause
Negative income tax
Negative list
negative equity
Negative amortization
Negative cash flow
Negative working capital
Negative yield curve


 
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