Interest rate risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Add links.) |
||
| Line 18: | Line 18: | ||
== See also == | == See also == | ||
* [[Asset-liability management]] | * [[Asset-liability management]] | ||
* [[Cross-currency interest rate swap]] | |||
* [[Double-whammy]] | * [[Double-whammy]] | ||
* [[Exposure]] | * [[Exposure]] | ||
* [[Fair value interest rate risk]] | * [[Fair value interest rate risk]] | ||
* [[Financial covenant]] | * [[Financial covenant]] | ||
* [[Forward rate agreement]] | |||
* [[Guide to risk management]] | * [[Guide to risk management]] | ||
* [[Interest cover]] | * [[Interest cover]] | ||
* [[Interest rate]] | * [[Interest rate]] | ||
* [[Interest rate cap]] | |||
* [[Interest rate collar]] | |||
* [[Interest rate exposure]] | |||
* [[Interest rate floor]] | |||
* [[Interest rate futures]] | |||
* [[Interest rate gap]] | |||
* [[Interest rate guarantee]] | |||
* [[Interest rate option]] | |||
* [[Interest Rate Risk in the Banking Book]] (IRBB) | * [[Interest Rate Risk in the Banking Book]] (IRBB) | ||
* [[Interest rate shock]] | |||
* [[Interest rate swap]] | |||
* [[IRHP]] | * [[IRHP]] | ||
* [[Matching]] | * [[Matching]] | ||
Revision as of 20:02, 1 May 2022
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. For example, potential breaches of interest cover covenants.
Sometimes written 'interest-rate risk'.
See also
- Asset-liability management
- Cross-currency interest rate swap
- Double-whammy
- Exposure
- Fair value interest rate risk
- Financial covenant
- Forward rate agreement
- Guide to risk management
- Interest cover
- Interest rate
- Interest rate cap
- Interest rate collar
- Interest rate exposure
- Interest rate floor
- Interest rate futures
- Interest rate gap
- Interest rate guarantee
- Interest rate option
- Interest Rate Risk in the Banking Book (IRBB)
- Interest rate shock
- Interest rate swap
- IRHP
- Matching
- Pipeline risk
- Portfolio hedging
- Risk-free rate of return
- Risk-free rates
- Shock
- Time bins
