income risk

Definition

The possibility that the income provided by a fund will fluctuate due to changing interest rates.

Use income risk in a sentence

Stocks often run off a basis of income risk; at any time the value could change and you could walk away big, or fall flat.

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My hedge fund manager does not like to invest in bonds consisting of variable interest rate loans because he does not like to include income risk in his funds.

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income return income sensitive repayment (ISR)