Convexity

Business / Finance / Convexity: Curved, as in the shape of the outsid of a circle. Usually referring to the price/required yield relationship for option-free bonds.

Effective Convexity

Business / Finance / Effective Convexity: The strike price in a market redemption provision plus the accrued interest to the redemption date. MORE

Positive Convexity

Business / Finance / Positive Convexity: A property of option-free bonds that the price appreciation for a large downward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change i MORE

Negative Convexity

Business / Finance / 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. For example, a fixed-rate mortgage may lo MORE

Effective Date

Health / Dentistry / Effective Date: The date on which coverage under a health benefits plan begins. MORE

Optimization Approach To Indexing

Business / Finance / Optimization Approach To Indexing: An approach to indexing that seeks to optimize some objective, such as to maximize the portfolio yield, to maximize convexity, or to maximize expected total returns. MORE

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