Riding the yield curve: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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* [[Stability]]
* [[Stability]]
* [[Yield curve]]
* [[Yield curve]]
[[Category:Identify_and_assess_risks]]
[[Category:Financial_products_and_markets]]

Latest revision as of 08:39, 2 July 2022

1.

Speculative activity which takes advantage of the current yield curve in order to increase the expected return on investments.

(At the risk of making losses if the current yield curve were to shift adversely.)


2.

Similar speculative activity which takes advantage of the current yield curve in order to reduce the expected cost of borrowing.

(Again at the risk of adverse effects, if the current yield curve were to shift adversely.)


See also