The risk resulting from the fact that interest or dividends earned from an investment may not be able to be reinvested in such a way that they earn the same rate of return as the invested funds that generated them. For example, falling interest rates may prevent bond coupon payments from earning the same rate of return as the original bond.
Related information about reinvestment risk:
- Reinvestment Risk Definition | Investopedia
The risk that future coupons from a bond will not be reinvested at the prevailing interest rate when the bond was initially purchased. Reinvestment risk is more ...
- Reinvestment risk - Wikipedia, the free encyclopedia
Reinvestment risk is one of the main genres of financial risk. The term describes the risk that a particular investment might be canceled or stopped somehow, that ...
- What is reinvestment risk? - InvestorWords.com
Definition of reinvestment risk: The risk resulting from the fact that interest or dividends earned from an investment may not be able to be reinvested in such a ...
- Reinvestment Risk - Financial Dictionary - The Free Dictionary
Definition of Reinvestment Risk in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Reinvestment Risk? Meaning of ...
- Reinvestment Risk Definition & Example | InvestingAnswers
We explain the definition of Reinvestment Risk, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- What is reinvestment risk? - BusinessDictionary.com
Definition of reinvestment risk: Probability of loss where a bank may have to make new loans from the maturing loans at a lower rate of interest.
- Risks of Bonds: Inflation Risk, Liquidity Risk, Reinvestment Risk
Bonds are among the safest investments in the world. But no investment is entirely risk free. In fact, fixed-income investing has its own particular forms of risk , ...
- Reinvestment risk
Similar financial terms. Reinvestment risk on bonds. Usually, when the yield of a bond is calculated, you assume that the coupons received before maturity are ...