Interest rate risk: Difference between revisions
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(IRR). | |||
The risk associated with a change in interest rates. | The risk associated with a change in interest rates. | ||
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Sometimes written 'interest-rate risk'. | Sometimes written 'interest-rate risk'. | ||
Not to be confused with Internal Rate of Return, which is also abbreviated to ''IRR''. | |||
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* [[Cross-currency interest rate swap]] | * [[Cross-currency interest rate swap]] | ||
* [[Double-whammy]] | * [[Double-whammy]] | ||
* [[Duration]] | |||
* [[Exposure]] | * [[Exposure]] | ||
* [[Fair value interest rate risk]] | * [[Fair value interest rate risk]] | ||
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* [[Forward rate agreement]] | * [[Forward rate agreement]] | ||
* [[Guide to risk management]] | * [[Guide to risk management]] | ||
* [[Internal rate of return]] | |||
* [[Interest cover]] | * [[Interest cover]] | ||
* [[Interest rate]] | * [[Interest rate]] | ||
| Line 35: | Line 41: | ||
* [[Interest rate guarantee]] | * [[Interest rate guarantee]] | ||
* [[Interest rate option]] | * [[Interest rate option]] | ||
* [[Interest Rate Risk in the Banking Book]] ( | * [[Interest Rate Risk in the Banking Book]] (IRRBB) | ||
* [[Interest rate shock]] | * [[Interest rate shock]] | ||
* [[Interest rate swap]] | * [[Interest rate swap]] | ||
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* [[Shock]] | * [[Shock]] | ||
* [[Time bins]] | * [[Time bins]] | ||
* [[Treasury]] | |||
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
