Nollakorkokäyrä

Nollakorkokäyrä, known in English as the zero-coupon curve, is a graphical representation of the yields of zero-coupon bonds of varying maturities at a given point in time. A zero-coupon bond is a debt instrument that does not pay periodic interest but instead pays its face value at maturity. The curve plots the yield to maturity on the vertical axis against the time to maturity on the horizontal axis.

The shape of the nollakorkokäyrä provides insights into market expectations regarding future interest rates and inflation. A positively sloped curve, where longer maturities have higher yields, suggests that the market anticipates interest rates to rise or that investors demand a premium for holding longer-term debt due to increased risk or expected inflation. A negatively sloped curve, where shorter maturities have higher yields, might indicate expectations of falling interest rates or a flight to safety in longer-term assets. A flat curve suggests that the market expects interest rates to remain stable.

The nollakorkokäyrä is a crucial tool in financial markets. It is used for pricing other debt instruments, such as coupon-bearing bonds, through a process called bootstrapping. It also serves as a benchmark for valuing derivatives, including interest rate swaps and options. Furthermore, central banks and economists use the curve to gauge the overall health and future direction of the economy. Understanding the nollakorkokäyrä is fundamental for investors and analysts involved in fixed-income markets.