Falling yield curve: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Align with related pages.) |
imported>Doug Williamson (Show order of curves in this situation.) |
||
| Line 1: | Line 1: | ||
This means that prevailing market yields are lower for longer maturities. | This means that prevailing market yields are lower for longer maturities. | ||
In this situation par yields are the highest, zero coupon yields are lower than the par yields, and the forward yields are the lowest of all. | |||
Revision as of 18:25, 13 November 2015
This means that prevailing market yields are lower for longer maturities.
In this situation par yields are the highest, zero coupon yields are lower than the par yields, and the forward yields are the lowest of all.
Also known as a 'negative yield curve'.
