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Rate risk |
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Rate riskIn 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.Rate risk Similar MatchesCovered or hedge option strategiesCovered or hedge option strategiesStrategies that involve a position in an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in the other, including covered call writing and protective put buying. Related: Naked strategies Variable rate loanVariable rate loanLoan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR. Moderated discussion listModerated discussion listAn email discussion list in which messages sent to the list must be approved by a list administrator (the "moderator") before being forwarded to all the subscribers. Internal growth rateInternal growth rateMaximum rate a firm can expand without outside sources of funding. Growth generated by cash flows retained by company. Capped rate mortgageCapped rate mortgageA mortgage which guarantees the interest rate charged will not rise above a certain level. But it may fall in line with variable rates. Further SuggestionsCorporate tax viewEffective annual interest rate Forward interest rate Spot rate Effective Interest Rate prevailing interest rate Teaser rate Buy and write strategy Lehman Brothers Government or Corporate Bond Index burn rate Annual Percentage Rate Equilibrium rate of interest Exchange rate determination Strategy Floating rate preferred Implied repo rate Lease rate Broker loan rate Adjustable rate preferred stock (ARPS) Dedication strategy Passive portfolio strategy Capitalization rate lower rate tax Real exchange rate Effective tax rate |
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