Double-whammy: Difference between revisions

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imported>Doug Williamson
(Create the page. Source: The Treasurer, March 2006, p10.)
 
imported>Doug Williamson
m (Simplify wording.)
 
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Two adverse events hitting simultaneously.
Two adverse events at the same time.


For example, a rise in interest costs on borrowings coupled with a fall in operational revenues.
For example, a rise in interest payable on borrowings coupled with a fall in revenues.




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*[[Interest rate risk]]
*[[Interest rate risk]]


[[Category:Business_and_Operational_Risk]]
[[Category:Manage_risks]]
[[Category:Interest_Rate_Risk]]
[[Category:Manage_risks]]

Latest revision as of 15:16, 3 July 2014

Two adverse events at the same time.

For example, a rise in interest payable on borrowings coupled with a fall in revenues.


Example

In a typical credit cycle, as inflationary pressures rise, so central banks raise interest rates to slow demand growth.

Borrowers are therefore hit with the double-whammy of weaker demand and higher loan costs.

Kit Juckes, Head of Fixed Income Research, RBS Global Banking and Markets, The Treasurer, March 2006.


See also