Rate risk

Definition:

In banking, the risk that profits may drop or losses occur because a rise in interest rates forces up the cost of funding fixed-rate loans or other fixed-rate assets.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Comissão do Mercado de Valores Mobiliários (CMVM)

Portugal's supervisory authority for the Portugese financial markets. Portugal's financial regulator.

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