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🖥️ A merging tool 🛠️ A smoothing tool 💹 A finance strategy
flattener

flattener

9.9
A trade that profits when short-term and long-term interest rates get closer
  • noun
  • /ˈflætənər/
  • Jargon
translation icon : estrategia de aplanamiento
  • The investor added a flattener to his portfolio to benefit from the narrowing yield curve.

Examples

  • Many traders use a flattener when they expect long-term rates to fall closer to short-term rates.

  • A sudden change in central bank policy can make a flattener position more profitable.

  • The flattener strategy can yield significant profits.

  • Many investors are using flatteners to hedge against interest rate risks.

  • The investor added a flattener to his portfolio to benefit from the narrowing yield curve.

  • Many traders use a flattener when they expect long-term rates to fall closer to short-term rates.

  • A sudden change in central bank policy can make a flattener position more profitable.

Surface Forms

flattener singular
flatteners plural

Morphology

flattener = flatten (semi-transparent) = flat + en + er

Formed from 'flatten' + -er, but the financial sense refers to a specialized trading strategy that a learner who knows 'flatten' may not predict.

Etymology

Flattener comes from flat ('level' or 'even'), the verb flatten ('make flat'), and the ending -er ('one who' or 'thing that'). In finance a flattener is a trade that tries to 'flatten' the yield curve by bringing long-term and short-term rates closer together, so the curve becomes more level.