Positive yield curve

Definition:

When long-term debt interest rates are higher than short-term debt rates (because of the increased risk involved with long-term debt security).

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Risk controlled arbitrage

A self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio