Such convexity is powerful as it helps us generalize from a few examples, learn new things quickly, and even helps us communicate and agree on what things mean.

It turns out that all tax-exempt munis exhibit negative convexity near par, even if they are not callable. The driver of this phenomenon is the so-called de minimis tax effect.

Duration and convexity are two tools used to manage the risk exposure of fixed-income investments. Duration measures the bond's sensitivity to interest rate changes.

How to Calculate Convexity in Excel To calculate convexity in Excel, begin by designating a different pair of cells for each of the variables identified in the formula. The first cell acts as the ...

Convexity isn't fixed, and it also isn't linear, so in some cases, a bond's secondary market price may move very dramatically; in others, it might not respond as quickly.

Convexity tends to be more sensitive in the shorter end of the yield curve, thus greater variance as yields may be moving higher or lower. In 2013, it was the “taper tantrum” when the Fed was ...

This is negative convexity, and what is significant here is how holders of MBS respond. In order to maintain a similar market exposure, the owner of the MBS needs to buy more bonds, swaps, or MBS ...

Shadow convexity reinforces the dominant trend in a hidden non-linear way and effects all participants. The ultimate non-market example of shadow short convexity is the failure of communism and ...

This is negative convexity, and what is significant here is how holders of MBS respond. In order to maintain a similar market exposure, the owner of the MBS needs to buy more bonds, swaps, or MBS ...

A novel method based on Malliavin calculus is developed to approximate convexity adjustments in a general interest rate model. Convexity adjustments are calculated for commonly traded interest rate ...

The aim of this paper is to give sharp bounds of the radius of α-convexity for the classes of λ-spirallike functions and p-fold λ-spirallike functions. The radius of α-convexity was introduced by S. S ...