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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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