Riding the yield curve
By riding the yield curve (German as: "on the yield curve ride") or maturity arbitrage refers to an active investment strategy with fixed-income securities ., In which a non maturities liquid funds are invested, that is, with a planning horizon of, for example, a Year, the liquid funds are not invested in annual paper, but in paper with a longer remaining term . The paper with the longer term is sold at the planning horizon. If the interest structure curve is rising (normal interest structure) and does not change by the end of the planning horizon, the investor can achieve a higher return than with an investment with matching maturities. The reason for this is that the remaining cash flows from the bond are discounted at a lower interest rate after one year, which means that the present value (price) of the bond increases.