market segmentation theory or preferred habitat theory

market segmentation theory or preferred habitat theory
A biased expectations theory that asserts that the shape of the yield curve is determined by the supply of and demand for securities within each maturity sector. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Market Segmentation Theory — A modern theory pertaining to interest rates stipulating that there is no necessary relationship between long and short term interest rates. Furthermore, short and long term markets fall into two different categories. Therefore, the yield curve… …   Investment dictionary

  • Market segmentation theory or preferred habitat theory — A biased expectations theory that asserts that the shape of the yield curve is determined by the supply of and demand for securities within each maturity sector. The New York Times Financial Glossary …   Financial and business terms

  • Yield curve — This article is about yield curves as used in finance. For the term s use in physics, see Yield curve (physics). Not to be confused with Yield curve spread – see Z spread. The US dollar yield curve as of February 9, 2005. The curve has a typical… …   Wikipedia

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