MARKETS GLOSSARY
Yield Curve
Yield Curve
A graph comparing interest rates on similar debt across maturities.
What does Yield Curve mean?
A graph comparing interest rates on similar debt across maturities. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Yield Curve in context
An inverted Treasury yield curve has shorter rates above longer rates.
Why it matters in financing
Yield Curve can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related markets terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.