LIQUIDITY THEORY OF THE TERM STRUCTURE


Meaning of LIQUIDITY THEORY OF THE TERM STRUCTURE in English

A biased expectations theory that asserts that the implied forward rates will not be a pure estimate of the market's expectations of future interest rates because they embody a liquidity premium .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.