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Investing Glossary:
Negative convexity
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
- N -
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| Definition: |
| 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. For example, a fixed-rate Mortgage may lose value as rates go down because of prepayments.
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