Zinspfade
Zinspfade is a term used in German-language finance to denote a trajectory or set of trajectories for interest rates over time across maturities. The concept is employed in scenario analysis, risk management, and asset-liability management to describe how the full yield curve may evolve under different economic conditions.
Etymology: from Zins, meaning interest rate, and Pfad, meaning path. The term is used in banks, investment
Applications: Zinspfade are used to assess interest-rate risk in portfolios, price fixed-income derivatives, and test the
Generation and methods: Paths can be generated from econometric forecasts, central-bank projections, market-implied forward curves, or
Limitations: The accuracy of zinspfade depends on model choice, calibration, and underlying economic assumptions. They may
Related topics include yield-curve modelling, interest-rate risk, scenario analysis, stress testing, and derivative pricing.