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Search Results - Interest rate risk

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Interest rate risk is the risk (variability in value) borne by an interest-bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is commonly measured by the bond's duration.

Interest rate risk analysis is almost always based on simulating movements in one or more yield curves using the Heath-Jarrow-Morton framework to ensure that the yield curve movements are both consistent with current market yield curves and such that no riskless arbitrage is possible. The Heath-Jarrow-Morton framework was developed in the early 1990s by David Heath of Cornell University, Andrew Morton of Lehman Brothers, and Robert A. Jarrow of Kamakura Corporation and Cornell University.

There are a number of standard calculations for measuring the impact of changing interest rates on a portfolio consisting of various assets and liabilities. The most common techniques include

Banks face four types of interest rate risk

Showing 1 to 12 of 12 Articles matching 'Interest rate risk' in related articles.
Pages: 1

1. Cash Out and No Closing Cost
November 16, 2009

To replace an existing debt with a fresh debt obligation bearing different terms, is referred as refinancing. A common refinancing for the consumers is the home mortgage. Advantages of Refinancing Refinancing at a lower rate may be undertaken to reduce interest costs, to extend repayment time, to pay other debts, to reduce ones periodic obligations of payment by taking convenient long term loans, to alter or reduce risk by refinancing from variable rate to fixed rate loans or vice versa, and to raise cash for investment or consumption or the payment of a dividend. In a nut shell, refinancing i... (read more)

Author: jitesh mohan

2. High risk loans - No Collateral, But Better Financial support
November 13, 2009

High risk loans are short term loans and also known as unsecured loans. Mostly, this monetary help support you during sudden cash emergencies. These loans call as high risk loans because lender doesn’t ask for any sort of collateral from the side of customer against the funds. There are very few requirements of these loans for qualification. If you are above 18 in age, have a checking account and steady job, then you can qualify for these loans. Although these loans come with a high interest rate due to short term duration but they are matchless for emergency. The best feature of this ... (read more)

Author: robert lingdon

3. Low Interest Personal Loan for Unemployed Students-Risk Free For Job less Students
November 13, 2009

Personal loan rates can exist low, there's a secret behind obtaining such loans. Your monthly payments will be low if your loan period is for a longer time. On the extra hand a fixed mortgage for a shorter time, offers you mortgage at a high monthly loan payment, and a lower interest rate. With higher payments every month, you obtain rid of your loan payments untimely. The lender faces less risk lending loans to the one with a house as it is pledged against the Low Interest Personal Loan he lends. In case you miss out on your loan payments, he has a safety lying with him which can for all time... (read more)

Author: Robart Watson

4. Unsecured Student Loan with High Risk-Choose Your Lender Carefully
November 06, 2009

It is not surprising that learning has become very costly. There are a lot of students who discover it hard to meet the expenses concerned in their educations. However, you can make use of a lot of lending institutions that provide monetary support to students to full their education. High Risk Transactions = High Interest Rate An unsecured student loan is one which does not need the borrower to give any collateral security to enhance the security of the transaction. Rather, this loan is offered only on the basis of the monetary situation of the borrower and his or her refund power. There is... (read more)

Author: Robart Watson

5. High Risk Personal Loans Unsecured: Get Cash Risk Free
October 26, 2009

If you are also one of them who are opting bad credit record, you can be relevant for High Risk Personal Loans Unsecured. The benefit of this loan is that you are free from all the boring procedure and your credit record will not be a difficulty for you in the processing of the money that will be in your account through this loan. You are to search over internet and you will discover that there are lots of lenders attached with High Risk Personal Loans unsecured be prepared to take high risk on your credit the past other than you will have to pay a bit higher interest rate for this loan. ... (read more)

Author: Carl Fullar

6. A Fixed Mortgage Presents a Planned Future
October 22, 2009

Many people looking to nail down a conservative approach to home financing opt to obtain a fixed mortgage as their financing vehicle. A fixed mortgage refers to the establishment of a fixed rate of interest that determines, fundamentally, a set monthly repayment figure. This conservative approach to home financing suits many people seeking to avoid the uncertainty and risk involved with other type of mortgage products available on the market today. Fixed rate mortgages provide an exact number that many conservative financial planners like to implement when arriving at producing a monthly budge... (read more)

Author: Dave Nalin

7. High Risk Unsecured Very Bad Credit Personal Loans: Get Money without any risk
October 22, 2009

High Risk Unsecured extremely Bad Credit Personal Loans are totally for the people who are out of pocket and they are pain from bad credit record, other than need cash to meet unexpected expenses or to clear off the present debts. They can obtain High Risk Unsecured Very Bad Credit Personal Loans without difficulty being as well bad credit record. There are lots of lenders ready to get high risk on your credit record because the lenders provide this loan Very Bad Credit Personal Loans keeping good credit record in their mind. Due to unsecured personal loans the lenders will indict high interes... (read more)

Author: Carl Fullar

8. Easy way Of getting car loan
October 22, 2009

Flexible features You can avail get a car loan in two forms secured and unsecured. In case of secured car loan you have to put some security as collateral against the loan, but for the second type of unsecured loan there is no such need. Though secured car loans will get the amount at comparatively lower interest rate there will always be the risk of losing your security. But unsecured car loans do not have any such type of threat. It may charge you some extra bucks but it has some advantages also. As there is no need of hectic paper processing of your property it will be ... (read more)

Author: aman k

9. Is Your Credit Score Above or Below Average?
October 21, 2009

Individuals who possess a good credit score always heads to the finish line first. They are eligible to loans and other forms of credits of lower interest rates and convenient terms of payment. Their good credit score serves as their assurance to the lending institution that they are not of credit risk and they have the capability of repaying any forms of credit that they will avail without committing delinquencies. Thus, individuals with good credit score have the access over loans and other forms of credits of lower interest rate payments and best credit terms. On the other hand, if yo... (read more)

Author: Juliet Sadler

10. Buying Life Insurance Policy In Dubai
October 16, 2009

Future is always uncertain and uncertainty births risk. Life insurance is required in order to provide financial security to the dependants of the policy owner in case of his sudden death. Life insurance is also a way of saving money. On the maturity of life insurance policy, the owner gets the whole amount with interest. In Dubai, the number of people who are covered under life insurance is increasing at a rapid rate. People there are getting aware about the benefits of life insurance. Life insurance agents are always there to help you in purchasing the right kind of life insurance policy. Ho... (read more)

Author: Genelia Brown

11. Unsecured Loans for Bad Credit - Improve Your Credit Score
October 12, 2009

Being in a bad credit when you are in need of cash or loans can really be hard especially because lenders will not want to risk on you. With such a record they are not sure if you can pay back for the loan or not. Nevertheless, there is an option in unsecured loans for bad credit where you do not have to risk any property for collateral though the interest rate can be a little higher. Besides, these are the most popular kind of loans for those with bad credits. Unsecured Loans for Bad Credit, as the name denotes, is meant for those with bad credit record and in need of some financial supp... (read more)

Author: Gregg Hall

12. Unsecured Personal loans: Rapid Cash Assistance for Personal Requirements
October 09, 2009

If you are spending your life as tenants and non-homeowners financial lenders have introduced a new loan scheme in the market named as unsecured personal loans. These loans considered to the ideal choice for the tenants. By this loan facility you can avail funds as per your need without pledging any security against the amount. Under this loan facility the risk factor for the lender is quite high that’s why the rate of interest is slightly high. By unsecured personal loans borrower may raise funds for any of their purposes whether it is personal or professionals. They may use funds for t... (read more)

Author: Hans Cole

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