Interest Rate Risk. When the interest rate rises, the price of a fixed rate bond will normally drop. If investors want to sell their bond before it matures, they may get less than their purchase price.
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 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. 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. 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. (1) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written interest rate risk policy. This policy shall ensure that the Bank has a proper measurement tool or model that captures the significant forms of interest rate exposure affecting the Bank's performance, and be consistent with the "Interest Rate Risk" booklet of the Comptroller's Handbook. The policy shall provide for a coordinated interest rate risk strategy and shall provide for, at a minimum, the following:
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. During periods of very low or negative interest rates, the fund may be unable to maintain positive returns or pay dividends to fund shareholders. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, result in heightened market volatility and detract from the fund’s performance to the extent the fund is exposed to such interest rates. Additionally, under certain market conditions in which interest rates are low and the market prices for portfolio securities have increased, the fund may have a very low, or even negative yield. A low or negative yield would cause the fund to lose money in certain conditions and over certain time periods. An increase in interest rates will generally cause the value of securities held by the fund to decline, may lead to heightened volatility in the fixed-income markets and may adversely affect the liquidity of certain fixed-income investments, including those held by the fund. The historically low interest rate environment heightens the risks associated with rising interest rates.
Interest Rate Risk. Sovello is exposed to interest rate risks because of its variable rate financial liabilities. It reduces these risks partly 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 68,079 thousand (2008 EUR 120,036 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 a portion of the liabilities. These hedging relationships are 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 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, 2009, would have decreased (increased) the profit for 2009 by EUR 611 thousand (2008 EUR 278 thousand). Annex 1.5 / 37 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, 2009, would have decreased equity by EUR 36 thousand (2008 EUR 217 thousand); an increase of 100 basis points would have increased it by EUR 41 thousand (2008 EUR 293 thousand).
Interest Rate Risk. The Company and its subsidiaries have the significant interest rate risks in relation to deposit at the financial institutions, bank overdrafts and short-term loans from the financial institutions, long-term loans from the financial institutions, loan from the director and short-term loan from the related parties and companies. Interest rate risk arises from the interest rate changes, which cause damage to the Company and its subsidiaries in the current period and in the future. As at December 2018 and 2017, the significant financial assets and financial liabilities classified by types of interest rates were as follows: In Baht Consolidated Financial Statement As at December 31, 2018 Financial assets Floating interest rate Fixed interest rate Interest - free Total Cash and cash equivalents 7,086,142.12 - 22,132,559.50 29,218,701.62 Short-term investments - 367,578.54 578,244.36 945,822.90 Trade account receivable - - - - Deposit pledged as collateral - Financial liabilities 9,241,903.52 - 9,241,903.52 Bank overdrafts and short-term loans from the financial institutions 37,255,899.85 419,168,891.00 - 456,424,790.85 Trade notes payable - - 24,301,426.51 24,301,426.51 Trade accounts payable and other payable - - 59,113,730.58 59,113,730.58 Payable to related parties - - 39,738,055.52 39,738,055.52 Accrued expenses - - 36,348,984.21 36,348,984.21 Liabilities under the finance lease agreement - 1,070.00 - 1,070.00 Long-term loans from financial institutions 557,716,968.93 - - 557,716,968.93 Short-term loan from other company - 48,161,777.52 - 48,161,777.52 Short-term loan from related parties - 230,000,000.00 - 230,000,000.00 Short-term loan from director - 3,000,000.00 - 3,000,000.00 In Baht Consolidated Financial Statement As at December 31, 2017 Financial assets Floating interest rate Fixed interest rate Interest - free Total Cash and cash equivalents 10,630,243.60 237,547.86 11,084,118.21 21,951,909.67 Short-term investments - 126,655.54 574,902.47 701,558.01 Trade account receivable - - 64,200.00 64,200.00 Deposit pledged as collateral - Financial liabilities 9,156,986.60 - 9,156,986.60 Bank overdrafts and short-term loans from the financial institutions 63,755,123.84 340,430,000.00 - 404,185,123.84 Trade notes payable - - 48,970,139.77 48,970,139.77 Trade accounts payable and other payable - - 85,714,256.91 85,714,256.91 Payable to related parties - - 42,640,694.10 42,640,694.10 Accrued expenses - - 38,227,949.00 38,227,949.00 Liabilities under the financ...
