steepener
English
[edit]Etymology
[edit]Noun
[edit]steepener (plural steepeners)
- (finance) A trade whose terms are based on the assumption that the rate of return will increase.
- 2009, Giovanni Cesari, John Aquilina, Niels Charpillon, Modelling, Pricing, and Hedging Counterparty Credit Exposure, page 155:
- 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.
- 2012, Howard Corb, Interest Rate Swaps and Other Derivatives, page 451:
- 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.