Traditional Theories of the Term Structure
By adminYield curves have been studied by financial economists for well over a century. During this period a number of different theories have been proposed to explain why yield curves may be upward sloping at one point in time and then downward sloping or flat at another point in time. We discuss three of the most popular traditional theories of the term structure in this series of posts. We then present a modern perspective on the term structure in the following series of articles.