Talk:Yield curve

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Article milestones Date Process Result February 18, 2005 Featured article candidate Not promoted April 6, 2005 Featured article candidate Not promoted Current Status: Former featured article candidate

Contents 1 older entries 2 Let's get rid of "stylized facts" 3 Implicit Future Rates 4 External link

[edit] older entries

This is a great article. Congratulations to all the editors involved.

Reasons for failure were:

(I say we wait about a month, and resubmit in late March.) --Christofurio 20:59, Feb 25, 2005 (UTC)

[edit] Let's get rid of "stylized facts"

"Stylized facts" are stylistically horrible. Facts must be true, otherwise a statement is either a falsehood or an opinion. Which make "stylized facts" ... mere economic jargon.

I'm not totally disagreeing, but you could also argue that the term 'yield curve' is 'mere economic jargon'. The use of the term 'stylized fact' is widespread in economic literature, because so many behaviours are statistically inferred. It is very cumbersome to say something like "...under the conditions for which data exists thusfar, which may not be enough to make a robust statistical inference, bond yields of different maturities have tended to move together a statistically significant number of times, which we will now posit is a 'normal' market condition, and henceforth will refer to as a 'fact' and use as the basis for a model of the market under real conditions in conjunction with other similarly created suppositions that together will aid our understanding of how the complete model will react to various changing environs, with other additional caveats, many of which can be found in various studies of the matter." Tristanreid 22:15, 19 February 2006 (UTC)

[edit] Implicit Future Rates

I deleted the paragraph quoted below because it is inaccurate/oversimplified. I wanted to explain before I got in a fight. You cannot merely assume, as the original author did, that a 5% 1yr rate and a 5.5% 2 year rate implies a 6% end of year 2 rate. It could imply a market assumption that rates will skyrocket at the end of the year (thus a market predicted rate in excess of 5.5%) or it could assume a January first jump to 5.5% and thus a 5.5% market predicted rate. Additionally, the author forgot that long term investments are inherently more risky and thus require a higher risk premium. If the fed GUARANTEED rates would remain 4% for 10 years, you'd still see a curve in the yield curve. --Laxrulz777 21:52, 28 August 2006 (UTC)

Yield curves carry an implicit forecast of future short-term interest rates: for example if the annual yield on a 1-year bond is 5%, and on a 2-year bond is 5.5%, then the implicit yield (forward rate) in year 2 is

[edit] External link

Hi

I have added an external link to my website http://www.bramaan.com that offers a free living working tool to create yield curves from cash-deposits, forward-rate-agreements, interest-rate-futures and interest-rate-swaps.

There is also a couple of real world examples, that I plan to expand substantially in the near future.

My link was promptly removed by, I would guess, somebody that acts as an administrator for this article. I do acknowledge the necessity for a strict editorial policy but I also believe that this utility makes a definite educational contribution.

I would therefore urge you to reconsider adding an external link to http://www.bramaan.com.

Kind regards

Theo Robbertze --Theobaldr (talk) 07:26, 25 April 2008 (UTC)

Your link simply drops to a registration page, which is a resource we avoid linking to (see guidelines). As there seem to be many non-registration alternatives, I'm not sure what value the link provides. Kuru ^talk 13:49, 25 April 2008 (UTC)

Thanks Kuru, it makes sense not to link to websites that require registration for the purposes set out in the Wikipedia guidelines.

Bramaan.com provides a platform for any internet user to experiment with building yield curves. All content and functionality in bramaan.com is available absolutely free of charge.

To protect the sometimes sensitive nature of the market data entered by bramaan.com users, it is necessary to issue ever user with a secure area. There is unfortunately no other way to achieve this than to have users go through a registration process.

I urge you to go to the site, create a login and have a look around. Personally I do not know of any other website that provides such a full set of curve building functionality, with or without registration required.

If that still doesn’t convince you I will let this matter go.

Thanks

Theo Robbertze --41.240.100.159 (talk) 14:24, 25 April 2008 (UTC)