Price risk

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Price risk

The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage pipeline risk created in the production segment when loan terms are set for the borrower in advance of setting terms for secondary market sale. If the general level of rates rises during the production cycle, the lender may have to sell the originated loans at a discount.

Price Risk

The risk of loss that occurs if the value of a security or portfolio falls below the price one paid to buy it.
References in periodicals archive ?
The objective of modifying the Price Stabilisation Fund (PSF) Scheme is to make it more easily accessible to the growers and address both the price risks as well crop risks and also to help India remain a credible supplier in international arena, through sustained and enhanced exports.
Because even if Egypt could successfully reduce demand and increase domestic productivity, the country will still remain a net importer or wheat and will therefore be exposed to international price risks.
VOLATILE The HGCA has warned farmers to manage price risks as prices of wheat and barley fall around the country.
ELECTRIC UTILITY DEREGULATION introduces new price risks for companies that consume large quantities of power.
Learning how to reduce aluminum market price risks in setting casting selling prices was one of three topics that aluminum casting producers gathered for at the Alchem Aluminum Seminar held in September in Coldwater, Michigan.
Derivatives contracts are especially efficient vehicles for unbundling the price risks embodied in assets and liabilities.
hedging their commodity price risks; and any number of industries that hedge their price risks for raw materials (including supply hedges).
While one accounting regulation permits companies to defer gains and losses on futures contracts hedging anticipated interest-rate and commodity price risks, another prohibits deferrals on foreign-currency forwards and swaps for hedging anticipated foreign-currency transactions.
Summary: ECB officials stress focus on price risks, despite market turmoil.
A bond investment is immunized when reinvestment and price risks completely offset each other, leaving the investment's future value unchanged regardless of changes in the market rate.
Other risks inherent in the development of brown coal include the price risks of brown coal products which may be tied to worldwide energy prices, geological risks of finding brown coal of sufficient quantity and quality to prove commercial, mining hazards and increased costs of complying with environmental, health, safety and transportation regulation.
Geopolitical, domestic political, social, economic growth, exchange rate and asset price risks are all high.