Interest rate risk: Difference between revisions

Revision as of 10:38, 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:

Sometimes written 'interest-rate risk'.

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 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 pensions liabilities, differences in competitiveness, or the changing nature of a market when interest rates change.
+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.