Definition of Interest Rate Risk

Financial Terms Beginning with I

What is Interest Rate Risk

Interest rate risk is the risk or probability for a loss in an investment when there is a change in interest rates. An increase in interest rates will usually have an adverse effect on the value of a debt security, such as a bond, as fixed-income investments are sensitive to changes in interest rates.

Bonds with a shorter time to maturity carry a smaller interest rate risk as compared to bonds with longer maturities. Long-term bonds carryy a higher probability of interest rate changes, which is why they carry a higher interest rate risk.

GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts

The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.

A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.

Benefits of the GlobEx Markets Financial Dictionary

There are several benefits to using the GlobEx Markets financial dictionary, including:

  • Clarifying Technical Terminology: The financial world is filled with complex terms and language that can be confusing to those who are not familiar with it. A financial dictionary can help clarify the meaning of technical terms and make them more understandable.
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Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.

Related Investment Terms

Commodity Risk

Foreign Investment Risk

Volatility Risk

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