Prepayment risk and Presentation currency: Difference between pages

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Prepayment risk is a form of interest rate risk for a financial institution.
The currency in which financial statements are presented.


It arises from the non-contractual early repayment by customers of, for example, fixed rate mortgages.


==See also==
* [[Functional currency]]


The financial institution therefore has an interest rate exposure for the - as yet unknown - prepayments by customers of its fixed interest rate product.
[[Category:Accounting,_tax_and_regulation]]
 
 
 
== See also ==
* [[Interest rate risk]]
* [[Pipeline risk]]
* [[RMBS]]
 
[[Category:Manage_risks]]

Latest revision as of 07:07, 2 July 2022

The currency in which financial statements are presented.


See also