He is a Chartered Market Technician (CMT). Negative convexity exists when the shape of a bond's yield curve is concave. A bond's convexity is the rate of change of its duration, and it is measured ...

Convexity is a measurement of the degree of the curve plotted on a graph that demonstrates the ... the bond is said to have negative convexity. If a bond’s duration rises and yields fall ...

So, what is this "negative convexity ... more complicated than the simple long-senior short-junior play that Jardine hypothesizes. Part of the problem is that "convexity", as a concept is not ...

This is called "negative convexity" and leaves investors with lower portfolio duration than their benchmark. While 64% of outstanding mortgages are locked into interest rates below 4%, about 16% ...