About Macro Convexity
"Macro convexity" is one of those terms that doesn't exist — at least, not until now. So, naturally, we turn to ChatGPT, the master of improvisation (or, as some might say, creative lying), to make some sense of it:
It can be used to describe the non-linear relationship between rates and economic growth in macroeconomics, and the impact of this on the fixed income market. In simpler terms, it's a fancy way of saying that rates and economic growth don't always behave as expected — they sometimes have a mind of their own, leading to strange and surprising twists in the economy. Investors need to watch out for these twists (let's call them "macro surprises") when making decisions, because nothing says fun like a little unpredictability in monetary policy.
