Other resources


Tools for Personal Help and Self Growth

Tools for Personal Help and Self Growth

Inverted yield curve

• A downward-sloping yield curve that indicates generally cheaper long-term borrowing costs than short-term borrowing costs.

• A chart showing long-term debt instruments having lower yields than short-term debt instruments. Also known as a Negative Yield Curve. See also: Flat Yield Curve; Normal Yield Curve.

• Is the market condition whereby the near-term interest rates are higher than long-term interest rates. For example, the two year rate is greater than the ten year rate; or, the spot (overnight) rate is higher than the thirty year rate. This inversion may be induced or result from changes in monetary policy, foreign exchange movements, immediate liquidity needs within the financial system, constrictions in money/credit and other financial forces.

 Embedded terms in definition
 Debt instrument
Flat yield curve
Foreign exchange
Interest rate
Monetary policy
Negative yield curve
Normal yield curve
Yield curve
 Related Terms

<< Inverted market Invested capital >>

Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

Nearly all men can stand adversity, but if you want to test a man's character, give him power. - Abraham Lincoln


Copyright 2011-2015 GVC. All rights reserved.