Interest rate risk
From ACT Wiki
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 pensions liabilities, differences in competitiveness, or the changing nature of a market when interest rates change.
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
