Extension Risk definition

Extension Risk. The risk that, during periods of rising interest rates, borrowers may pay off their mortgage loans later than expected, preventing a mutual fund from reinvesting principal proceeds at higher interest rates and resulting in less income than potentially available. Floating and Variable Rate Securities Risk: Floating and variable rate securities provide for a periodic adjustment in the interest rate paid on the securities. The rate adjustment intervals may be regular and range from daily up to annually, or may be based on an event, such as a change in the prime rate. Floating and variable rate securities may be subject to greater liquidity risk than other debt securities, meaning that there may be limitations on a mutual fund’s ability to sell the securities at any given time. Such securities also may lose value.
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Extension Risk. The issuer of a security may repay principal more slowly than expected because of rising interest rates. In this event, short- and medium-duration securities are effectively converted into longer-duration securities, increasing their sensitivity to interest-rate changes and causing their prices to decline. Financials Sector Risk: Concentrating assets in the financials sector may disproportionately subject the portfolio to the risks of that industry, including loss of value because of economic recession, availability of credit, volatile interest rates, government regulation, and other factors.
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Extension Risk. Extension risk applies to mortgage-backed securities. This risk exists when borrowers pay off their mortgage loans later than expected which prevents an owner of mortgage-backed securities from reinvesting principal proceeds at higher prevailing interest rates. Income Risk: Income risk is the chance that a fund’s income will decline because of falling interest rates. Index Sampling Risk: Index sampling risk is the chance that the securities selected for a fund will not provide investment performance matching that of the target index.
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Examples of Extension Risk in a sentence

  • HavanaSpokane, WA 99202 Contact: Jo Ann Warner at 509-477-2168 or warnerj@wsu.edu Heather Schriver at 541-891-9190 or hschriver@wsu.eduAppendix A Extension Risk Management Education Competitive Grants Program BUDGET AND BUDGET NARRATIVE INSTRUCTIONS The Extension Risk Management Education Centers review proposed project costs to make certain those costs are reasonable to the project and allowable per the following federal statutes and regulations that apply to project grants awarded under this program.

  • Under this authority NIFA partners with four regional Extension Risk Management Education (ERME) Centers to carry out a national competitive grants program in Risk Management Education to educate agricultural producers about the full range of risk management activities.

  • These comments will be considered in the development of the next RFA for the Extension Risk Management Education Competitive Grants Program.

  • All applications must be submitted through the Extension Risk Management online Results Verification System (RVS).

  • Southern Extension Risk Management Education Center University of Arkansas Division of AgricultureRon Rainey, Director2301 South University Ave Little Rock, AR 72204 Contact: Erica B.

  • Extension Risk: There may be no incentive, in the form of a coupon step-up, for the issuer to redeem the securities issued.

  • Holders may see their coupons cancelled while the issuer continues to pay dividends on its common equity and variable compensation to its workforce.Call Extension Risk: Some hybrids are issued as perpetual instruments callable at pre-determined levels only with the approval of the competent authority.

  • Extension Risk Management Education Aspirational Goals and ObjectivesRisk management involves taking a deliberate and knowledgeable approach to dealing with one or more of the five primary sources of agricultural risk.

  • Call Extension Risk: Some hybrids are issued as perpetual instruments, callable at pre- determined levels only with the approval of the competent authority.

  • Upon completions of these, the successful candidate must submit two clean unbound copies of the thesis to FGSR.


More Definitions of Extension Risk

Extension Risk. Extension risk is the risk that, when interest rates rise, certain obligations will be paid off more slowly than anticipated and the value of these securities will fall.
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Related to Extension Risk

  • Extension Term means the time period defined in §2.C.

  • Extended Term shall have the meaning given such term in Section 2.4.

  • Extension Rate means, for each distribution date following a Failed Remarketing with respect to the class A-5 notes if such notes are then in foreign exchange mode, the rate of interest payable to the related currency Swap Counterparty, generally not to exceed three-month LIBOR plus 0.75%, unless the remarketing agent, in consultation with the administrator, determine that market conditions or some other benefit to the trust requires a higher rate; provided that in each case the Rating Agency Condition is satisfied.

  • Extended Term Loans has the meaning specified in Section 2.15(a).

  • Extension Option shall have the meaning set forth in Section 2.5(c) hereof.

  • Non-Extension Drawing has the meaning specified in Section 3.5(d).

  • Extended Term Loan shall have the meaning assigned to such term in Section 2.21(e).

  • Extended Terms shall have the meaning given such term in Section 2.4.

  • Non-Extended Facility has the meaning assigned to such term in Section 3.6(d).

  • Second Extended Maturity Date has the meaning set forth in Section 2.10.

  • Extension Minimum Condition means a condition to consummating any Extension that a minimum amount (to be determined and specified in the relevant Extension Request, in the Borrower’s sole discretion) of any or all applicable Classes be submitted for Extension.

  • Extension Conditions Defined in Section 3.06(a).

  • Extended Tranche has the meaning specified in Section 2.19(a).

  • Extended Loans shall have the meaning assigned to such term in Section 2.21(a).

  • Extension Amendment has the meaning set forth in Section 2.16(d).

  • Extended Maturity Date shall have the meaning set forth in Section 2.5(c) hereof.

  • Debt service extension base means an amount equal to that

  • First Extended Maturity Date has the meaning specified in Section 2.15(a).

  • Non-Extension Advance means an Advance made pursuant to Section 2.02(b).

  • Additional Term Loan Commitment means any term commitment added pursuant to Sections 2.22, 2.23 or 9.02(c)(i).

  • Extension Date has the meaning specified in Section 2.19(b).

  • Non-Extending Lender has the meaning specified in Section 2.18(b).

  • Non-Extension Notice has the meaning specified in Section 2.10.

  • Renewal Term has the meaning set forth in Section 2.

  • Additional Term Loans means any term loan added pursuant to Section 2.22, 2.23 or 9.02(c)(i).

  • Maturity Date Extension Request means a request by the Borrower, in the form of Exhibit G hereto or such other form as shall be approved by the Administrative Agent, for the extension of the Maturity Date pursuant to Section 2.20.