Derivative instrument and Interest rate risk: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Removed link) |
(Add link.) |
||
| Line 1: | Line 1: | ||
(IRR). | |||
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 pension liabilities | |||
*Differences in competitiveness | |||
*The changing nature of a market when interest rates change | |||
*Secondary effects, especially potentially adverse effects, resulting from any of the primary effects above. For example, potential breaches of interest cover covenants. | |||
Sometimes written 'interest-rate risk'. | |||
Not to be confused with Internal Rate of Return, which is also abbreviated to ''IRR''. | |||
== See also == | == See also == | ||
* [[ | * [[Asset-liability management]] | ||
* [[ | * [[Cross-currency interest rate swap]] | ||
* [[ | * [[Double-whammy]] | ||
* [[ | * [[Duration]] | ||
* [[ | * [[Exposure]] | ||
* [[ | * [[Fair value interest rate risk]] | ||
* [[ | * [[Financial covenant]] | ||
* [[ | * [[Forward rate agreement]] | ||
* [[ | * [[Guide to risk management]] | ||
* [[ | * [[Internal rate of return]] | ||
* [[ | * [[Interest cover]] | ||
* [[ | * [[Interest rate]] | ||
* [[ | * [[Interest rate cap]] | ||
* [[ | * [[Interest rate collar]] | ||
* [[ | * [[Interest rate exposure]] | ||
* [[ | * [[Interest rate floor]] | ||
* [[ | * [[Interest rate futures]] | ||
* [[ | * [[Interest rate gap]] | ||
* [[ | * [[Interest rate guarantee]] | ||
* [[ | * [[Interest rate option]] | ||
* [[ | * [[Interest Rate Risk in the Banking Book]] (IRRBB) | ||
* [[ | * [[Interest rate shock]] | ||
* [[ | * [[Interest rate swap]] | ||
* [[ | * [[IRHP]] | ||
* [[ | * [[Matching]] | ||
* [[ | * [[Pipeline risk]] | ||
* [[ | * [[Portfolio hedging]] | ||
* [[ | * [[Risk-free rate of return]] | ||
* [[Risk-free rates]] | |||
* [[Shock]] | |||
* [[Time bins]] | |||
* [[Treasury]] | |||
== Other resource == | |||
[[Media:2015_05_May_-_The_devil_is_in_the_detail.pdf| The devil is in the detail, The Treasurer, 2015]] | |||
[[Category: | [[Category:Manage_risks]] | ||
Latest revision as of 06:49, 19 March 2024
(IRR).
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 pension liabilities
- Differences in competitiveness
- The changing nature of a market when interest rates change
- Secondary effects, especially potentially adverse effects, resulting from any of the primary effects above. For example, potential breaches of interest cover covenants.
Sometimes written 'interest-rate risk'.
Not to be confused with Internal Rate of Return, which is also abbreviated to IRR.
See also
- Asset-liability management
- Cross-currency interest rate swap
- Double-whammy
- Duration
- Exposure
- Fair value interest rate risk
- Financial covenant
- Forward rate agreement
- Guide to risk management
- Internal rate of return
- Interest cover
- Interest rate
- Interest rate cap
- Interest rate collar
- Interest rate exposure
- Interest rate floor
- Interest rate futures
- Interest rate gap
- Interest rate guarantee
- Interest rate option
- Interest Rate Risk in the Banking Book (IRRBB)
- Interest rate shock
- Interest rate swap
- IRHP
- Matching
- Pipeline risk
- Portfolio hedging
- Risk-free rate of return
- Risk-free rates
- Shock
- Time bins
- Treasury
