| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,885,722,182 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Rate Risk |
Also found in: Wikipedia | 0.01 sec. |
|
Rate risk In banking, the risk that profits may drop or losses occur because a rise in interest rates forces up the cost of funding fixed-rate loans or other fixed-rate assets. Rate Risk The risk of loss due to a change in interest rates. 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. 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 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. Rate 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. |
|
| Financial browser | ? | ? Full browser | |||
|---|---|---|---|---|---|
Rate of exchange Rate of Interest rate of return rate of return of investment Rate of return ratios Rate Protection rate relief Rate Risk Rate/Point Break-Even Rate/Point Options Rating rating agencies rating agency Rating service Rating Trigger |
| ||||
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|