convexity

outward curvature / geometric convexity / bond price curvature

Noun

This term describes a physical or mathematical outward curvature. In optics and geometry, it evokes the image of a dome or a bulging surface, contrasting with the inward dip of concavity. It is used in technical contexts to describe how light bends or how shapes are structured. In specialized fields like finance, the word shifts from a visual description to a measure of sensitivity. It describes the rate of change in a bond's duration, acting as a risk management metric rather than a physical shape.

Meanings

Noun

"The convexity of the lens helps to focus the light rays into a single point."

Noun

The state of being convex in a mathematical or geometric sense, specifically referring to a set where a line segment between any two points in the set remains within the set.

"The researcher analyzed the convexity of the function to ensure that any local minimum was also a global minimum."

Noun

In finance, a measure of the curvature in the relationship between bond prices and bond yields.

"Investors often seek bonds with higher convexity to protect against interest rate volatility."

Last Updated: June 14, 2026•Report an Error