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Negative Butterfly

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Dictionary Says

Definition of 'Negative Butterfly'

A non-parallel yield curve shift in which long- and short-term yields decrease by a greater degree than intermediate rates. This yield curve shift effectively humps the curve, adding to the curvature of the yield curve.
Investopedia Says

Investopedia explains 'Negative Butterfly'

For example, a negative butterfly shift can happen when short- and long term-rates decrease by 75 basis points (0.75%), while intermediate rates only decrease by 50 basis points (0.50%).

This is the reverse of a positive butterfly, in which short- and long-term rates increase more than intermediate rates.

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  42. Form 6781: Gains And Losses From Section ...

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  96. Synthetic Dividend

  97. Variable Ratio Write

  98. VIX Option

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  100. Zero Cost Collar

  101. Zomma

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