Interest rate risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Add secondary effects.) |
||
| Line 9: | Line 9: | ||
*Changing market value of debt, or of pension liabilities | *Changing market value of debt, or of pension liabilities | ||
*Differences in competitiveness | *Differences in competitiveness | ||
*The changing nature of a market when interest rates change. | *The changing nature of a market when interest rates change | ||
*Secondary effects, especially potentially adverse effects, resulting from any of the primary effects above. | |||
Revision as of 10:40, 15 October 2017
The risk associated with a change in interest rates.
This may take several forms in the treasury context.
For example, and depending on the direction of the change:
- Increasing interest cost
- Falling interest income
- Changing market value of debt, or of pension liabilities
- Differences in competitiveness
- The changing nature of a market when interest rates change
- Secondary effects, especially potentially adverse effects, resulting from any of the primary effects above.
Sometimes written 'interest-rate risk'.
See also
- Asset-liability management
- Double-whammy
- Exposure
- Fair value interest rate risk
- Guide to risk management
- Interest rate
- IRHP
- IRRBB
- Matching
- Pipeline risk
- Portfolio hedging
- Risk free rate of return
- Shock
- Time bins
