Exchange Currency

interest rate risk

The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. This risk can be reduced by diversifying the durations of the fixed-income investments that are held at a given time.

Related information about interest rate risk:
  1. Interest rate risk - Wikipedia, the free encyclopedia
    [edit] Calculating interest rate risk. Interest rate risk analysis is almost always based on simulating movements in one or more yield curves using the ...
     
  2. Interest Rate Risk Definition | Investopedia
    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield ...
     
  3. Understanding Interest-Rate Risk
    If you hold a bond until maturity, you may be less concerned about these price fluctuations (which are known as interest-rate risk, or market risk), because you ...
     
  4. OCC: Interest Rate Risk
    The acceptance and management of financial risk is inherent to the business of banking and banks' roles as financial intermediaries. To meet the demands of ...
     
  5. Interest Rate Risk - Financial Dictionary - The Free Dictionary
    The chance that a security's value will change due to a change in interest rates. For example, a bond's price drops as interest rates rise. For a depository ...
     
  6. What is interest rate risk? definition and meaning
    Definition of interest rate risk: The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. This risk can be ...
     
  7. Interest Rate Risk
    Interest rate risk is risk to the earnings or market value of a portfolio due to uncertain future interest rates. Discussions of interest rate risk can be confusing ...
     
  8. Duration and Bond Interest Rate Risk
    Another risk that bond investors face is interest rate risk--the risk that rising interest rates will make their fixed interest rate bonds less valuable. To illustrate this ...