Segmented markets hypothesis

The segmented markets hypothesis, first described in Culbertson (1957), seeks to explain the shape of the yield curve. It states that different types of market participants, with different requirements, invest in different parts of the term structure. For instance, the banking sector needs short-dated bonds, while pension funds require longer-term ones. Regulatory reasons may also affect preferences for particular maturity investments. 

A variation on this hypothesis is the preferred habitat theory, described in Modigliani and Sutch (1967), which states that although investors have preferred maturities, they may choose other terms if they receive a 

---

BASF is thus currently endeavouring to establish the substance DINCH as a new registered substitute (entirely tested plasticiser without any hazardous properties) for DEHP in high-price market segments (e.g. medical devices). Soft PVC users substitute on the material level, if they can achieve further process-related and/or quahty-related optimisations in the course of technological development (e.g. underbody hard shells) Environment and health-compatible substance properties are additional qualities in business-to-business (B2B) markets. They are of relevance almost only for manufacturers, who market their products on demand-dominated, saturated markets with differentiated quality production — Hypothesis 8). 

---