Negative convexity occurs when the shape of a bond's yield curve is concave. Most mortgage bonds are negatively convex, and callable bonds usually exhibit negative convexity at lower yields.

Convexity measures the relationship between bond prices and bond yields, which shows how a bond’s duration changes with interest rates.

Samsung celebrates convexity in ad for the concave Galaxy Round. by Vlad Savov. Source Samsung Mobile Korea (YouTube) | Via Phone Arena and Engadget. Oct 28, 2013, 1:12 PM UTC ...

Productive Assets are Concave to CPI, Scarce Assets are Convex Notes: Upper panel for four productive assets, Lower panel for four scarce assets. Period 1973-2022.

In July of 2012 I wrote in Trading the Wrong Playbook Bubble that negative interest rates took the discount out of the discount rate. The idea was.

To take on convexity, we need to first grasp what’s known as duration. As interest rates drop, bond prices will rise and vice versa. The extent of the move is typically larger for bonds with a ...

Want to surprise people at cocktail parties when discussing the 2007-08 financial cataclysm? Just tell them the crisis was caused by an undue love of concavity and a perilous disdain for convexity.

Convexity hedging was evident recently in the tightening spread between a 10-year interest rate swap and the 10-year Treasury yield. Tighter swap spreads meant that the differential between the ...