Interest rate and Interest rate exposure: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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(IR).
''Risk management''


An interest rate is the rate of return receivable from lending money, or the rate payable on a borrowing.
A measure of the potential cost to a business of adverse changes in market interest rates.


In wholesale markets, market interest rates are conventionally quoted on a per annum basis.
The evaluation of the potential cost may be a simple money amount for a given time period, or a broader evaluation including secondary effects and less easily quantified items.  




== See also ==
== See also ==
* [[Bridge financing]]
* [[Interest rate]]
* [[Cost-plus loan pricing]]
* [[Market rate]]
* [[Discount rate]]
* [[Risk management]]
* [[Discount yield]]
* [[Interest]]
* [[Interest rate cap]]
* [[Interest rate exposure]]
* [[Interest rate floor]]
* [[Interest rate guarantee]]
* [[Interest rate option]]
* [[Interest rate risk]]
* [[Interest rate tiering]]
* [[Lombard rate]]
* [[Monetary policy]]
* [[Prime rate]]
* [[Rate reset]]
* [[Yield]]
* [[Zero rate provision]]
 
 
== Other resources ==
[[Media:2016_02_Feb_-_Many_happy_returns.pdf| Many happy returns - calculating and applying interest rates and yields, The Treasurer]]


[[Category:Manage_risks]]
[[Category:Manage_risks]]

Latest revision as of 11:15, 13 December 2016

Risk management

A measure of the potential cost to a business of adverse changes in market interest rates.

The evaluation of the potential cost may be a simple money amount for a given time period, or a broader evaluation including secondary effects and less easily quantified items.


See also