← All Terms
Finance · Advanced Finance

Interest Rate Risk

Noun
US US /ˈɪntrəst reɪt rɪsk/ GB UK /ˈɪntrəst reɪt rɪsk/
Finance Advanced Finance advanced

Definition

The risk that changing interest rates will negatively affect an investment.

Visual Reference

Interest Rate Risk illustration

Detailed Explanation

Building explanation…

Example

Interest Rate Risk is used by financial analysts and portfolio managers for complex modeling.

In Practice

Also known as: Rate Risk. Closely related to Bonds, Duration.

Video Explanation

Loading video for “Interest Rate Risk”…

Case Study

Interest Rate Risk - key concept in Advanced Finance.

Word Usage

Bond investing; Banking; Mortgage

Finance Advanced Finance

Use Case

Applied in Advanced Finance contexts: Bond investing; Banking

Also Known As

advanced-finance

Synonyms

Rate Risk

Related Terms

← Browse All Terms