Interest Rate Risk. 4.2.2.1 The price of a fixed rate bond will drop when the interest rate rises. If the bond to be sold before matures, the bond price may be less than the purchase price.
Interest Rate Risk. The price of fixed rate bonds fluctuates according to changes in market interest rates. Prices for fixed rate bonds move inversely with changes in interest rates. In general, market interest rate movements have a larger impact on the price of bonds with a longer remaining period to maturity.
Interest Rate Risk. Interest rate risk will be minimized primarily through investment in a variety of term to maturity fixed income securities with maturities less than thirty years. Maximum fixed income portfolio duration is limited to the equivalent of a twenty year term to maturity treasury security.
Interest Rate Risk. The PRC government has gradually liberalized the regulation of interest rates in recent years. Further liberalization may increase interest rate volatility. For Renminbi products which are, or may invest in, Renminbi debt instruments, such instruments are susceptible to interest rate fluctuations, which may adversely affect the return and performance of the Renminbi products.
Interest Rate Risk. Quiport is not exposed to significant interest rate risk as loans are at fixed rates.
Interest Rate Risk. Borrower shall comply with and shall maintain in full force and effect a program for the hedging of interest rate risk (which may include one or more Interest Rate Risk Agreements) upon terms and in a manner acceptable to Agent providing for a notional amount equal to the excess amount of (i) the aggregate unpaid principal balance of Borrowed Money Indebtedness of Borrower (on a consolidated basis) bearing interest at a variable rate over (ii) 50% of the aggregate unpaid principal balance of the Borrowed Money Indebtedness of Borrower (on a consolidated basis).
Interest Rate Risk. Because the AIF does not invest in interest-bearing securities, it is not generally exposed to interest rate risk. That said, the gold price displays a high degree of correlation with movements in US dollar policy rates, albeit with a time lag, as a result of which there is an indirect interest rate risk.
Interest Rate Risk. The risk that changing interest rates will cause your mutual funds to decline in value. For example, when interest rates rise, bond prices decline and the value your bond fund may also decline as well.
Interest Rate Risk. Investments in fixed-interest instruments involve the risk that the market rates prevailing when the instrument is issued might subsequently change. If market rates rise compared to the inter- est rates at the time of the issue, the price of the fixed-interest instrument usually falls. By con- trast, if market rates fall, the price of the fixed-interest instrument rises. Such price movements mean that current yields on the fixed-interest instruments more or less correspond to the current market interest rate. However, such price fluctuations vary according to the (residual) maturity of the fixed-interest securities. Fixed-interest securities with shorter maturities are less exposed to price risks than those with longer maturities. On the other hand, fixed-interest securities with shorter maturities normally have lower yields than those with longer maturities. Because of their short maturities (max. 397 days), money market instruments tend to have a lower exposure to price risks. Moreover, the interest rates for different interest-bearing instruments may vary, even when those instruments have comparable maturities and are denominated in the same cur- rency.
Interest Rate Risk. Sovello is exposed to interest rate risks because of its variable rate financial liabilities. It reduces these risks by using interest rate swaps which exchange the variable interest rate for a fixed rate of 4.655%. The carrying amount of the variable rate financial liabilities at the reporting date was EUR 120,036 (2007 EUR 109,097) thousand. In 2007, to hedge its exposure to the risk of interest rate movements, the Company entered into interest rate swaps having an initial total notional principal amount of EUR 90,000 thousand and terms running until September 30, 2010. The notional principal amounts, terms and maturity dates match those of the hedged items. The hedging relationships are therefore designated as cash flow xxxxxx. The Company applies the hedge accounting rules of IAS 39. In accordance with IFRS 7 interest rate risks are presented by means of sensitivity analyses. These sensitivity analyses show how profit or loss or equity would have been affected by changes in market interest rates. The sensitivity analyses are prepared using the following assumptions: In the case of original financial instruments with fixed interest rates, changes in market interest rates affect profit or loss only where the financial instruments are measured at fair value. Financial instruments with fixed interest rates which are measured at amortized cost do not therefore expose the Company to the risk of interest rate movements. In the case of original financial instruments with variable interest rates which are not designated as hedged items within a cash flow hedging relationship, changes in market interest rates do affect profit or loss and are therefore to be included in the interest rate sensitivity analysis (cash flow risk) under IFRS 7. An increase (decrease) of 100 basis points in the market interest rate at December 31, 2008, would have decreased (increased) the profit for 2008 by EUR 278 (2007 EUR 31) thousand. In the case of financial instruments designated as cash flow xxxxxx, changes in market interest rates affect the Accumulated other comprehensive income component of equity, and are therefore included in the fair value sensitivity analyses. A decrease of 100 basis points in the market interest rate at December 31, 2008, would have decreased equity by EUR 217 (2007 EUR 770) thousand; an increase of 100 basis points would have increased it by EUR 293 (2007 EUR 753) thousand.
