INTEREST RATE RISK

Interest Rate Risk

Interest Rate Risk

Introduction

The interest rate risk refers to the risk of losses arising from adverse changes in market interest.

Discussion

Interest rate risk management requires a good understanding of the structure of interest rates and the structure of interest rate curve. Depending on the nature of changes in interest rates, it can distinguish the following subtypes of credit risk: risk of general changes in interest rates - the risk of rising or falling interest rates on all investments in one or more currencies, regardless of their maturity and credit rating ; risk of changes in the structure of the ...