Interest rate risk definition

Interest rate risk means market value volatility due to the changes in the general level of interest rates over the life of the investment(s).

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Interest rate risk. (IRR) means the current or prospective risk to the institution’s earnings and own funds arising from adverse movements in interest rates.

Interest rate risk. (IRR) means the current or prospective risk to the institution’s earnings and

Examples of Interest rate risk in a sentence

• Interest rate risk results from both trading book and banking book.

• 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.

• Interest rate risk exposure shall range from 0% to 10% invested in sovereign debt instruments, issued by the public or private sector, in all geographical areas including emerging markets, in the Investment Grade category, as assessed by the management company or the rating agencies.

• Interest rate risk is the risk that debt obligations and other instruments in the Fund’s portfolio will decline in value because of increases in market interest rates.

• Interest rate risk is the risk that prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise.

More Definitions of Interest rate risk

Interest rate risk means the risk that asset values are adversely affected by changes in current interest rates;

Interest rate risk. - means the risk that potential loss in on- or off-balance sheet position diverse changes in interest rates.

Interest rate risk means the sensitivity of the values of assets, liabilities and financial instruments to changes in the term structure of interest rates, or in the volatility of interest rates.

Interest rate risk. Interest rate risk refers to the fluctuations in value of debt securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already-issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities. Fluctuations in the market value of the Fund's portfolio securities after the Fund buys them normally do not affect the interest income payable on those securities (unless the security's interest is payable on a variable rate pegged to particular interest rate changes). However, those price fluctuations will be reflected in the valuations of the securities, and therefore the Fund's net asset values will be affected by those fluctuations.

Interest rate risk. (IRR) means the current or prospective risk to the investment firm’s

Interest rate risk means the current and prospective risk to a credit union's capital and earnings arising from movements in interest rates.

Interest rate risk means the risk of changes in the market rate of interest having an adverse effect on the Group's net interest income/expense. The Group’s revenue and cash flows from its operation are basically independent of changes in market rate of interest as the Group has no significant interest-bearing assets. The Group’s interest rate risk arises through non-current borrowing. Fixed interest borrowing exposes the Group to interest rate risk in terms of fair value. The Group management continually monitors interest rate changes and acts accordingly.