Steepener

Quick meaning: Steepener is a noun meaning (finance) A trade whose terms are based on the assumption that the rate of return will increase.

Meaning

(finance) A trade whose terms are based on the assumption that the rate of return will increase.

Example Sentences

Provided that the curve doesn't ever flatten too much and the option remains out-of-the-money, then we will put on flatteners when the curve steepens and put on steepeners when the curve flattens.

Steepeners are one example where cashflows are computed as difference between two swap rates, e.g. the 10 years and the 5 years. As the name of instrument suggests, this gives a view on the steepness of the swap curve.

Word Forms

• steepeners

Related Words

Related dictionary entries include flattener, speculation, pyramiding, leverage, stoozing, longing.

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