Dictionary

flattener en · NOUN

Etymology

From flatten + -er.

Meanings

1. Anything that flattens.
2. A trade whose terms are based on the assumption that the rate of return will decrease.
   • For example, if a trader thought that 2's 10's would trade lower than 185, he or she would put on a flattener. 2014, Greg Gliner, Global Macro Trading: Profiting in a New World Economy:
   • 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:

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