He is a Chartered Market Technician (CMT). Negative convexity exists when the shape of a bond's yield curve is concave. A bond's convexity is the rate of change of its duration, and it is measured ...

Convexity is a measurement of the degree of the curve plotted on a graph that demonstrates the relationship between bond prices and bond yield. What Is Convexity? Convexity is the curvature in the ...

Analysts and traders use terms like negative convexity and convexity hedging to explain a phenomenon that’s been compared to a “beast” in the market. The result can lead to market distortion ...

supporting the case for a concave play while making convex alternatives look like a mad desire to lose money. Needless to say, convexity is no longer discredited as lunacy these days. In fact ...

Fragility' can be defined as an accelerating sensitivity to a harmful stressor: this response plots as a concave curve and ... The relation of fragility, convexity and sensitivity to disorder ...

Some are also attributing the push lower in yields to a less easily explained phenomenon: hedging against negative convexity in the mortgage market.

These purchases are for "convexity" buying that helps offset the effects of mortgage refinancing to take advantage of lower interest rates. They could amplify the decline in Treasury yields that ...