steepener means A trade whose terms are based on the assumption that the rate of return will increase. Lexicurio rates it Sui generis — a strength score of 92 out of 100.
Etymology
From steepen + -er.
noun
- 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.”