interest rate risk
Definition
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.
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Related Terms
matched maturities, ladder strategy, staggered maturities, prepayment risk, risk, maturity gap, duration gap
'interest rate risk
' appears in the definitions of these terms on BusinessDictionary.com
forfaiting, risk
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