Explain the concept of negative convexity and why an MBS exhibits this phenomenon.

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Debt Markets And Investments

ISBN: 9780190877439

1st Edition

Authors: H. Kent Baker, Greg Filbeck, Andrew C. Spieler

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Question Posted: Dec 07, 2023 03:23 AM

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Explain the concept of negative convexity and why an MBS exhibits this phenomenon.

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Negative convexity is the phenomenon whereby when interest rates decline ...View the full answer

Debt Markets And Investments

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