Inverted, or Negative,Yield Curve

The interest rate structure which exists when short-term interest rates exceed long-term interest rates. See ?ascending, or positive, yield curve.

Remarks: Bond funds including mutual funds (open-end and closed-end, actively managed and indexed), exchange-traded funds and unit investment trusts offer a convenient and affordable way to invest in a diversified portfolio of bonds, but a bond fund investment can differ from a bond investment in ways that are important to understand.