Why do IR bermudan options have negative vega on midcurve? Does it have something to do with mean reversion and a way of lower the price vs market prices?

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    $\begingroup$ do you mean negative vega across the whole ATM vol-grid, or just for specific expiry-tenor points? It'll be more useful if you can provide more details such as the call-periods of the Bermudan, versus the vega grid. $\endgroup$ – Kiann May 9 at 7:45
  • $\begingroup$ so say you are long 10nc2 berm. what would the vega profile look like? are you short vega anywhere? and how does mean reversion factor impact the berm price? $\endgroup$ – RKCheck May 11 at 17:32

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