Segmentation and Shock: Difference between pages

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1. ''Marketing and market analysis.''
1. ''Interest rate risk analysis and management.''


Market segmentation is an approach that seeks to:
A change in interest rates, used to analyse interest rate risk.
*Understand customers better, and in particular understand the differences between groups of customers, and
*Differentiate and tailor product and service offerings accordingly.


The shock is usually a simplified risk modelling assumption (although the source of the assumption could also be an assumed future repetition of an actual shock that happened in the past).


Among other benefits, this may help to:
*Increase brand awareness and brand loyalty, and
*Enable charging higher prices for higher quality differentiated offerings.


The simplest form of interest shock is a change which is:


2. ''Other segmentation.''
*Immediate; and
*Permanent;
*And which affects all interest rates by an equal amount.


Any other division of a whole, into parts that are useful to consider separately.


For example, the segmentation of total cash holdings into operating cash, reserve cash and strategic cash.
2.


 
A large, usually adverse, change in market conditions.
:<span style="color:#4B0082">'''''Cash segmentation policy'''''</span>
 
:"Given the prevailing market environment, liquidity will come at a premium.  
 
:It is therefore important that cash investors conduct a thorough evaluation of their cash needs and determine their risk profile.
 
:Effective forecasting of liquidity needs and assessment of risk tolerance creates the opportunity to achieve higher levels of risk adjusted returns within a cash portfolio."
 
:''Cash investing in a new world - Treasurer's Wiki''




== See also ==
== See also ==
* [[24/7]]
* [[Back test]]
* [[Alternative Investment Market]] (AIM)
* [[Down-shock]]
* [[Black market]]
* [[Economic value of equity]] (EVE)
* [[Capital market]]
* [[Interest rate risk]]
* [[Cash investing in a new world]]
* [[Interest Rate Risk in the Banking Book]] (IRRBB)
* [[Cash market]]
* [[NII]]
* [[Commodity]]
* [[Non-parallel shock]]
* [[Debt capital market]] (DCM)
* [[Parallel shock]]
* [[Deep market]]
* [[Scarring]]
* [[Demand]]
* [[Up-shock]]
* [[Differentiation]]
* [[Yield curve risk]]
* [[Efficient market]]
* [[Efficient market hypothesis]] (EMH)
* [[Emerging market]]
* [[Equity market]]
* [[Ethics]]
* [[Financial markets]]
* [[Forward market]]
* [[Free market]]
* [[Grey market]]
* [[Liquid market]]
* [[London Stock Exchange]]
* [[Market ]]
* [[Market environment matrix]] (MEM)
* [[Market maker]]
* [[Market mechanism]]
* [[Market price]]
* [[Market risk]]
* [[Market taker]]
* [[Market value]]
* [[MiFID]]
* [[Money market]]
* [[Operating cash]]
* [[Off-market]]
* [[Primary market]]
* [[Product Market Matrix]] (PMM)
* [[Regulated market]]
* [[Regulation]]
* [[Reserve cash]]
* [[Retail]]
* [[Secondary market]]
* [[Single Market]]
* [[Spot market]]
* [[Strategic cash]]
* [[Supply]]
* [[Wholesale]]


[[Category:The_business_context]]
[[Category:The_business_context]]
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[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Liquidity_management]]

Revision as of 09:22, 24 June 2022

1. Interest rate risk analysis and management.

A change in interest rates, used to analyse interest rate risk.

The shock is usually a simplified risk modelling assumption (although the source of the assumption could also be an assumed future repetition of an actual shock that happened in the past).


The simplest form of interest shock is a change which is:

  • Immediate; and
  • Permanent;
  • And which affects all interest rates by an equal amount.


2.

A large, usually adverse, change in market conditions.


See also

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