DV01
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Dollar value of a basis point |
|---|---|
| Categories | Business & Finance |
DV01 stands for Dollar value of a basis point, a bond & Fixed-Income abbreviation.
Change in a bond's or portfolio's price for a one-basis-point (0.01 percent) change in yield, expressed in dollars. Traders use it to size positions and hedges in a common unit of interest-rate risk.
Example: A DV01 of $85,000 means the portfolio loses about that much if yields rise one basis point.
Usage notes
Also called PV01 or BPV (basis point value), though some practitioners distinguish them slightly. DV01 grows with a bond's duration and position size. Hedge ratios between two bonds are often set by matching their DV01s.
Related abbreviations
More bond & Fixed-Income abbreviations
- CDX – Credit default swap index
- CLO – Collateralized loan obligation
- CMBS – Commercial mortgage-backed security
- CMO – Collateralized mortgage obligation
- CoCo – Contingent convertible bond
- CP – Commercial paper
- ESTR – Euro short-term rate (€STR)
- EURIBOR – Euro Interbank Offered Rate
- FRA – Forward rate agreement
- FRN – Floating-rate note
- GO – General obligation bond
- HY – High yield