yield curve note

Yield Curve Note

A debt security structured so that its yield increases when prevailing interest rates decrease and declines when these interest rates increase. Because yield curve notes are the opposite of most other debt securities, investors use them to hedge against possible changes in interest rates that might be unfavorable to their other investments.

yield curve note

A floating-rate note on which yields increase when interest rates decline and yields decline when interest rates increase. Yield curve notes appeal to investors who want to hedge falling interest rates.
Mentioned in ?
References in periodicals archive ?
6% of the portfolio is invested in yield curve notes and inverse floating notes, which mature next year.