Sentences with phrase «positive slope of the yield curve»

As maturing proceeds are reinvested at the end of the ladder, the yield of the portfolio is greater than what would be expected by the average maturity of the bond portfolio because of the positive slope of the yield curve.

Not exact matches

Although downward sloping yield curves have dominated the landscape in Australia in the deregulated era, positive sloped yield curves have been the norm in a number of other countries, particularly those with relatively low inflation (see table).

What this means is that there are intrinsic levels of risk affecting the yields on high quality corporate debt, lessening the positive slope of their spread curves, or with agencies inverting the spread curves.

I have heard otherwise intelligent people say that the economy can't go into a recession because the slope of the Treasury yield curve is too positive.

My preferred monetary policy in normal times is for the yield curve to have about 50 basis of positive slope from twos to tens.

Given the current positive slope of the TIPS curve, you can pick up additional yield for increasing maturity without taking inflation risk.