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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 MatchesModerated 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. Protected StrategyProtected StrategyA position that has limited risk. A protected short sale (short stock, long call) has limited risk, as does a protected straddle write (short straddle, long out-of-the-money combination). See also Combination and Straddle. Married put strategyMarried put strategyThe simultaneous purchase of stock and put options representing an equivalent number of shares. This is a limited risk strategy during the life of the puts because the stock can always be sold for at least the strike price of the purchased puts. Covered call writing strategyCovered call writing strategyA strategy that involves writing a call option on securities that the investor owns. See: Covered or hedge option strategies. Spot exchange ratesSpot exchange ratesExchange rate on currency for immediate delivery. Related: Forward exchange rate. Further SuggestionsconglomerateExchange rate exposure Strategic trade policy argument for a tariff Expected Spot Rate Call money rate internal rate of return Floating rate note (FRN) interest rate swap Exchange Rate Mechanism marginal tax rate Nominal rate of protection Money rate of return Expectations theory of forward exchange rates Riskless rate of return Portfolio internal rate of return Prime rate Stepped fixed rate mortgage Stated annual interest rate Renegotiable rate Separate customer Historical exchange rate cross rate interest rate Savings rate Personal inflation rate |
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