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Price compression refers to: The price of compression valves used to price bonds. The price of callable bonds which never increase above the call price.
Price compression refers to:
The price of compression valves used to price bonds. | ||
The price of callable bonds which never increase above the call price. | ||
The negative convexity that is created as a result of an embedded call option in a bond. | ||
The higher credit risk in callable bonds compressing the bond. | ||
It is not a term used in fixed income. |
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