Home > Term: Liquidity theory of the term structure
Liquidity theory of the term structure
A biassed 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.
- Part of Speech: noun
- Industry/Domain: Financial services
- Category: General Finance
- Company: Bloomberg
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- Harry8L
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(London, United Kingdom)