Guardate il nostro webinar “The Secrets Behind Layered Hedging” per imparare a smussare
il tasso di copertura FX nel tempo e ridurre la variabilità dei flussi di cassa
Guardare ora

Glossary

Navigate the complex world of currency management with our comprehensive dictionary of financial terms and definitions.

Interest Rate Risk

Interest rate risk is risk that moves in interest rates affect the value of fixed-income instruments such as bonds. Because the value of a bond is the present value of its discounted cash flows, an increase in interest rates (used as discount rates) automatically translates into a lower present value. In banking, interest rate risk is assessed both in terms of assets and liabilities. If, for example, short-term interest rates rise while long-term interest rates stay stable or fall, the net interest margin —and the bank’s profitability— would decline as a consequence.