InvestorWords.com

duration gap


Definition

A method of attempting to quantify interest rate risk involving a comparison of the potential changes in value to assets and liabilities that are affected by interest rate fluctuations over all relevant intervals. The duration of each asset or liability defines an interval that must be assessed.


Related Videos




Search for another term


Related Terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z