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.




interest rate risk is ...
... part of the
Bonds subject.


Related Terms

matched maturities -
ladder strategy -  More
staggered maturities -
prepayment risk, maturity gap, duration gap, immunization, hybrid ARM
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