Financial and business terms. 2012.
pure expectations theory — A theory that asserts that forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the market s expectations of future short term rates. For example, an increasing slope to the term… … Financial and business terms
Local expectations theory — A form of the pure expectations theory which suggests that the returns on bonds of different maturities will be the same over a short term investment horizon. The New York Times Financial Glossary … Financial and business terms
local expectations theory — A form of the pure expectations theory that suggests that the returns on bonds of different maturities ( maturity) will be the same over a short term investment horizon. Bloomberg Financial Dictionary … Financial and business terms
Expectations hypothesis theories — Theories of the term structure of interest rates which include the pure expectations theory, the liquidity theory of the term structure, and the preferred habitat theory. These theories hold that each forward rate equals the expected future… … Financial and business terms
expectations hypothesis theories — Theories of the term structure of interest rates, which include the pure expectations theory; the liquidity theory of the term structure, and the preferred habitat theory. These theories hold that each forward rate equals the expected future… … Financial and business terms
Biased expectations theories — Related: pure expectations theory. The New York Times Financial Glossary … Financial and business terms
Return-to-maturity expectations — A variant of pure expectations theory which suggests that the return that an investor will realize by rolling over short term bonds to some investment horizon will be the same as holding a zero coupon bond with a maturity that is the same as that … Financial and business terms
biased expectations theories — Related: pure expectations theory. Bloomberg Financial Dictionary … Financial and business terms
return-to-maturity expectations — A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short term bonds to some investment horizon will be the same as holding a zero coupon bond with a maturity that is the same as that… … Financial and business terms
Liquidity theory of the term structure — 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. The New York Times Financial Glossary … Financial and business terms
