Price risk


 

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Price risk

The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mortgage pipeline risk created in the production segment when loan terms are set for the borrower in advance of setting terms for secondary market sale. If the general level of rates rises during the production cycle, the lender may have to sell the originated loans at a discount.



Price risk

Similar Matches

Factor Price Equalization Theorem

Factor Price Equalization Theorem

One of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone.


Reverse price risk

Reverse price risk

A type of mortgage pipeline risk that occurs when a lender commits to sell loans to an investor at rates prevailing at the time of mortgage application but sets the note rates when the borrowers closes. The lender is thus exposed to the risk of falling rates.


Tokyo Stock Price Index

Tokyo Stock Price Index

The index of the 1,000 largest companies quoted on the Tokyo Stock Exchange. Although the Nikkei 225 Index is quoted more often, Topix is in some ways a more representative index.


Equilibrium price

Equilibrium price

The price when the supply of goods matches demand.


Reference price

Reference price

See minimum price system.


Further Suggestions

Sell price
Price elastic
Administered price
"Customer picking prices"
call price
Current prices
buying price
Trading price
Strike price
price earnings ratio (P/E ratio)
Realistic on price
making a price
Settle price
Variable price security
Import price index
Flat price (also clean price)
retail price index
spot price
bid price
World price
Factor-price space
Flat price risk
limit price
Upset price
Price effect


 
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