The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. This risk can be reduced by diversifying the durations of the fixed-income investments that are held at a given time.
Related information about interest rate risk:
- Interest rate risk - Wikipedia, the free encyclopedia
[edit] Calculating interest rate risk. Interest rate risk analysis is almost always based on simulating movements in one or more yield curves using the ...
- Interest Rate Risk Definition | Investopedia
The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield ...
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If you hold a bond until maturity, you may be less concerned about these price fluctuations (which are known as interest-rate risk, or market risk), because you ...
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The acceptance and management of financial risk is inherent to the business of banking and banks' roles as financial intermediaries. To meet the demands of ...
- Interest Rate Risk - Financial Dictionary - The Free Dictionary
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 ...
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Definition of interest rate risk: The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates. This risk can be ...
- Interest Rate Risk
Interest rate risk is risk to the earnings or market value of a portfolio due to uncertain future interest rates. Discussions of interest rate risk can be confusing ...
- Duration and Bond Interest Rate Risk
Another risk that bond investors face is interest rate risk--the risk that rising interest rates will make their fixed interest rate bonds less valuable. To illustrate this ...