Negative yield curve

 

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Negative yield curve

When the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing.



Negative yield curve

Similar Matches

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.


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 amortization

Negative amortization

A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.


Negative cash flow

Negative cash flow

Occurs when spending in a business is greater than earnings.


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.


Further Suggestions

Negative duration
Negative working capital
Negative list
Negative pledge clause
negative equity
Negative covenant
Negative income tax
N Negative Amortization


 
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