The potential for losses arising from changes in interest rates.
Interest Rate Risk
Related Terms
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Risk sentiment is a term used to describe how financial market participants (traders and investors) are behaving and feeling. What traders choose to buy or sell means balancing how much they are prepared to lose with how much they hope to earn. You can look at risk sentiment as the expression of traders’ and investors’ willingness to […]
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...
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NIRP stands for “negative interest rate policy”. NIRP is a macroeconomic concept that describes conditions characterized by negative nominal interest rates. It’s when central banks resort to...
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Secured Overnight Financing Rate (SOFR) is the secured overnight funding rate in USD. It is a rate published by the New York federal reserve based upon secured overnight transactions in the repo...
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Yield curve control (“YCC”), also sometimes called interest rate pegs, is where bond yields are set by the central bank. It is considered a type of unconventional monetary policy. Under yield curve...