Just tell them the crisis was caused by an undue love of concavity and a perilous disdain for convexity. If investors worldwide had been less enamoured of financial concavity and less neglectful ...

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 ...

The concavity exercise asks students to think about erosion in natural forms and how that concavity contrasts with the convexity of the objects. Dominant, subdominant, and subordinate relationships ...

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 ...

Increasing probability of a recession implied by the yield curve makes convexity more attractive in a fixed-income portfolio, as it adds gains or dampens losses if yields change wildly.

Implied volatilities fell across asset classes last week as risk assets rebounded. SPX convexity premium (VIX minus SPX 1M ATM vol) came in further last week, ending the week at just 3.4 pts.

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 ...

It appeared first on the Bloomberg Terminal. Equity volatility metrics, such as measures of skew and convexity, aren’t showing the same signs of stress as in other assets, despite the macro ...