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Funding Risk |
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Funding risk The risk associated with the impact on a project's cash flow from higher funding costs or lack of availability of funds. See: interest rate risk. Funding Risk The risk of loss due to a change in interest rates. Funding risk is important to transactions like interest rate swaps. In such a transaction, the party receiving the floating rate will receive a smaller amount if the floating rate decreases. Funding risk is also important to bonds; if interest rates rise, the prices of bonds fall. This affects the secondary market for bonds; for example, if one purchased a bond with a 3% interest rate and the prevailing rate rises to 5%, it becomes difficult or impossible to resell the bond at a profit. Finally, funding risk is important to project finance. If interest rates rise, funding may not be available for a new loan for a project that has already started. Funding risk is also called interest rate risk. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Our funding risks are substantially lower than at the outset of the global financial crisis, our revenue streams are more diverse and complementary and our credit quality remains very strong. eliminates funding risk for you, as an Indophil shareholder. This funding risk is further mitigated by the quality of the receivables portfolio in that the majority of the receivables are from |
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