Interest rate risk definition

Interest rate risk means the risk of financial loss due to the sensitivity of earnings and net worth of an Enter- prise to changes in interest rates.

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 is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

• Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

• Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment.

• Interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

• Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

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

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 means a risk that the relative value of a security, especially a bond, 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; interest income on floating rate instruments cannot be anticipated. Due to varying interest income, you may not able to determine a definite yield of floating rate instruments at the time they purchase them, so that their return on investment cannot be compared with that of investments having longer fixed interest periods. If the terms and conditions of the relevant instruments provide for frequent interest payment dates, you are exposed to the reinvestment risk if market interest rates decline. That is, you may reinvest the interest income paid to you only at the relevant lower interest rates then prevailing.

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

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.