Double-whammy

Two adverse events at the same time.

For example, a rise in interest payable on borrowings coupled with a fall in revenues.

Example

In a typical credit cycle, as inflationary pressures rise, so central banks raise interest rates to slow demand growth.

Borrowers are therefore hit with the double-whammy of weaker demand and higher loan costs.

Kit Juckes, Head of Fixed Income Research, RBS Global Banking and Markets, The Treasurer, March 2006.

See also

• Interest rate risk