Meaning INTEREST RATE RISK: The chance that a security's value will change due to a change in interest rates. For example, a bond's price drops as interest rates rise. For a depository institution, also called funding risk: The risk that spread income will suffer because of a change in interest rates
More terms such as Interest rate risk in Dictionary I.
- Definition Information Costs:
- Examples Transactions costs that include the assessment of the investment merits of a financial asset. Related: Search costs interest rate risk definition.
- Definition Indicated Dividend:
- Examples dividends that would be paid on a share of stock over the next 12 months if each dividend were the same amount as the most recent dividend. Usually represented by the letter e in stock tables interest rate risk explain.
- Definition Investment Climate:
- Examples Factors such as economic, monetary, and other conditions that affect the performance of investments interest rate risk what is.
- Definition Investment Philosophy:
- Examples The style and general ideology of investment practiced by an investor. Certain investors favor small-capitalization stocks, while others prefer large blue-chip stocks, for example interest rate risk meaning.
- Definition Internal Expansion:
- Examples Growth of assets resulting from internal financing or internally generated cash flow interest rate risk abbreviation.