Income risk

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Income risk

The possibility that a portfolio's dividends will decline as a result of falling interest rates. Income risk is generally greatest for money market instruments and short-term bonds, and least for long-term bonds.

Income Risk

The risk that the yield of a fund investing in short-term debt securities will decrease because of a decline in interest rates. For example, suppose a mutual fund invests in money market securities with maturities of less than a year. If interest rates decline, then the yield on the money market fund will also decline because when the money market securities mature, the returns are reinvested at lower interest rates. Income risk is the same concept as interest rate risk, but the former applies to funds, while the latter pertains to individual debt securities.
References in periodicals archive ?
Advancing to the third order, and assuming that the variance as well as the mean of u is the same under both income risks, we obtain
Global Banking News-January 23, 2018--Slovenian central bank says banks could face income risks from low interest rates
Insurance coverage of income risks owing to decline of fish stocks and price risks due to market price fluctuations was not reported by any of the respondents of the survey.
The BPV High Quality Short Duration Income Fund seeks stable income and low volatility by attempting to mitigate typical fixed income risks. The fund specializes in US Agency Mortgage Backed Securities, where the portfolio management team's extensive experience in Agency MBS security selection may add value.
Finally, financial competition between potential offshore wind parks raises up the question of reliability of the data measurements in order to lower the income risks for lenders.
Pooling of labor income risks between the two partners in a household may influence the total household labor income risk profile.
* 4 retirement income risks -- and how to avoid them
Collectively, these risks are known as four inflation-adjusted retirement income risks, or FIARIR (pronounced "fire").
Baldoz added the benefits under the employees' compensation program seek to mitigate income risks associated with work-related sickness or injury which resulted to disability or death.
In conclusion, my research on the ways in which households respond to risk, to government transfers in recessions, and to income risks give us clues to the determinants of asset returns, how effective anti-recessionary policies are, and what is driving recent increases in income inequality.
What investors see as their most significant retirement income challenge Maintaining lifestyle in retirement 59% Balancing asset growth and protection 57% Impact of rising costs 53% Making sure they don't run out of money 47% Protecting income from market volatility 36% Learning retirement income risks 23% Which companies to trust 18% Where to start/first steps 4% When to start planning 3% Note: Table made from bar graph.
"The low correlations of long-only and long/short commodity portfolios with equities and bonds confirm the role of commodity investments as diversifiers of both equity and fixed income risks. While the correlation between long-only commodity portfolios and equities has risen sharply since the downfall of Lehman Brothers, long/short investing continues to offer excellent diversification benefits.