price compression

price compression
The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Price compression — The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price. The New York Times Financial Glossary …   Financial and business terms

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