Shortfall risk

Shortfall risk

The risk of falling short of any investment target.

Shortfall Risk

The risk that an investment's actual return will be less than the expected return, or, more properly, the return needed to meet one's investment goals.
References in periodicals archive ?
Despite the generally positive collateral performance trends, ratings remain constrained by declining remaining loan counts and interest shortfall risk.
Premier Annastacia Palaszczuk said according to the Grattan Institute and the Turnbull Governments Australian Energy Market Operator, Queensland was the only mainland NEM State to be assessed to be no shortfall risk for two and 10-year outlooks.
Although the studies described above found support for the risk-reduction sharing model, they did not directly assess sharing as a function of shortfall risk (i.
MOST LIKELY PATH TO THE SHORTFALL RISK UNDER THE OPTIMAL HEDGING.
In these situations, liquidity risk can have a significant impact on the overall success of the investment program and result in shortfall risk.
Our results show that purchasing gap insurance can generally increase the hedging effectiveness in multiple ways by reducing basis risk, thus increasing shareholder value and, at the same time, lowering shortfall risk.
If our target is inflation plus five, and we are entirely in cash, we have no volatility risk, but we have a high shortfall risk.
Aside from the uncertainties of retirement, several investment factors can contribute to successful management of shortfall risk.
NORWICH Union yesterday warned of a shortfall risk in nine out of 10 of their mortgage endowment policies.
Policy providers were accused of not warning of the shortfall risk and many have had to compensate the policyholders.
Nonetheless, a soft bullet payment includes the implicit shortfall risk during the accumulation period, so that investors may receive the remaining principal payments over an additional period (usually one to three years) after the maturity date (Fabozzi and Yuen, 1998).
The committee also considered factors such as pool size, interest shortfall risk and a bond's credit sensitivity to a significant slowdown in prepayment rates.