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.

Interest Rate Risk

The risk of loss due to a change in interest rates. Interest rate risk is important to transactions like interest rate swaps. In such a transaction, the party receiving the floating rate will receive a smaller amount should the floating rate decrease. Interest rate 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 purchases 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, interest rate 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.

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Interest Rate Risk			This will require a much more careful modeling of the funding risk than has ever been necessary before. In wake of CARD Act, now is the time to rethink credit card pricing by Raymond, Mitch / Credit Union Times Had it not been for technological innovation, and particularly increases in computing power, the kinds of products which enable a business to manage its interest rate, foreign exchange rate, and funding risks could never have been developed. World 'grappling with serious financial crisis' by Gulf Daily News (Manama, Bahrain) If a project's funding risk changes, it can be compared and contrasted with other programs' sensitivity to change. U.S. Transportation Command News Service (Oct. 6, 2006): quantifying ... by Masquelier, Barbra / Defense AT & L			Fund assets Fund Family Fund Flows Fund Group Fund Manager Fund network Fund of Funds Fund Overlap Fund Supermarket Fund Switching Fundamental Analysis Fundamental Analyst Fundamental beta Fundamental descriptors Fundamental Forecasting Fundamental Information fundamentalist Fundamentals Funded Debt Funded Liability Funded Pension Plan funding Funding Agreement funding fee Funding Ratio Funding Risk Fundo Fundo abutre Fundo de cobertura Fundo de comercio Fundo de commodities Fundo de garantia de depositos funds from operations Funds Management Funds Statement Fungibility Fungible Fungible Issue Fungibles funnel sinking fund Funzionario addetto ai contatti coi clienti Fuori borsa Fur and Jewelry Floater Fur Insurance Furatto Na Kaabu Furlong furniture, fixtures, and equipment Furthest Month Furthest Out Fusao de empresas Fusei Kaikei			Funding Allowance Target Funding And Accounting Document Funding and Development Information Service Funding Authorization Document Funding Commitment Decision Letters Funding Constraint Assessment Funding Control System Funding Exchange funding fee Funding Guide for International Science and Technology Cooperation Funding Integration Process Team Funding Lending Management Funding of Schools Program funding operations Funding Opportunities for Graduate Students Funding Opportunity Announcement Funding Plan for Logistics Support Funding Program Advice Funding Question Funding ratio Funding Ratios Funding Resource Code Funding Resource Number Funding Review Committee Funding Risk Funding Risks Funding Service Partner Funding Source Summary Ledger Funding Staffing and Allowances Handbook Funding Standard Account Funding Standard Carryover Balance Funding system Funding Target Attainment Percentage Funding Team Funding Your Education Funding/Availability Multi-Method Allocator for Spares fundis fundis Fundless Fundo Fundo abutre Fundo de cobertura Fundo de comercio Fundo de commodities Fundo de Garantia Automóvel Fundo de garantia de depositos Fundo de Garantia do Tempo de Serviço Fundo de Investimento em Empresas Emergentes Fundo do Estabelecimento Prisional de Macau Fundo Europeu De Desenvolvimento Regional

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