• Never Mind Yield Curves. What's Negative Convexity?

    7 days ago - By Washington Post

    Analysts and traders are blaming a highly technical, though increasingly familiar, culprit for dramatic plunges in U.S. Treasury interest rates. The terms they use - “negative convexity” and “convexity hedging” - aim to explain a phenomenon that's been compared to a beast in the market. The result can be a market distortion that has people jumping to the wrong conclusion about the likelihood of a recession. What does it all mean, and why does it matter?
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