Interest Rate Risk Clause Samples
The Interest Rate Risk clause defines how changes in prevailing interest rates will affect the obligations or payments under the agreement. Typically, this clause specifies whether interest rates are fixed or variable, outlines the reference rate used (such as LIBOR or SOFR), and may describe how adjustments are calculated if rates fluctuate during the contract term. Its core function is to allocate the financial risk associated with interest rate movements between the parties, ensuring both sides understand their exposure and can plan accordingly.
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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. 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. Interest rates can rise as well as fall. A risk exists with interest rates that the relative value of a security will worsen due to an interest rate increase. This could impact negatively on other products. There are additional interest rate related risks in relation to floating rate instruments and fixed rate instruments. For example interest income on floating rate instruments cannot be anticipated. Due to varying interest income, you are not able to determine a definite yield of floating rate instruments at the time you purchase them, so that your investment return cannot be compared with that of investments having longer fixed interest periods.
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. This is the possibility for an investor to experience losses due to changes in interest rates. The purchase and sale of a debt instrument may result in profit or loss because the value of a debt instrument changes inversely with prevailing interest rates.
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.