Positive convexity
A property of option-free bonds whereby the price appreciation for a large upward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change in interest rates. |
Similar financial terms
Positive covenant (of a bond)A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.
Positive Carry
The condition whereby a portfolio after financing considerations still generates a positive income.
Negative convexity
A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points.
