steepener

plural steepeners

1. businessA trade whose terms are based on the assumption that the rate of return will increase.

   Provided that the curve doesn't ever flatten too much and the option remains out-of-the-money, then we will put on flatteners when the curve steepens and put on steepeners when the curve flattens.

   2012, Howard Corb, Interest Rate Swaps and Other Derivatives, page 451

   1 more example

   Steepeners are one example where cashflows are computed as difference between two swap rates, e.g. the 10 years and the 5 years. As the name of instrument suggests, this gives a view on the steepness of the swap curve.

   2009, Giovanni Cesari, John Aquilina, Niels Charpillon, Modelling, Pricing, and Hedging Counterparty Credit Exposure, page 155