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steepener

noun

Etymology

From steepen + -er.

  1. derived from *(s)tewb-✻
  2. inherited from *staupaz✻
  3. inherited from stēap
  4. inherited from steep
  5. suffixed as steepen — “steep + en”
  6. suffixed as steepener — “steepen + er”

Definitions

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

    • 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.
    • 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.

The neighborhood

Vish — recursive loop

No curated loop yet for steepener. Loops are being traced one word at a time while the ingestion pipeline matures.

sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA