Interest rate risk - Définition financière
Définition concise du terme interest rate risk
Interest rate risk is the risk of a financial loss caused by a change in market interest rates.
Définition complète du terme interest rate risk
Any security or financial contract with fixed cash flows over a certain period of time - such as a bond, a loan or a deposit - is exposed to interest rate risk. Changes in market interest rates can make these cashflows more or less profitable. In the case of negotiable securities, the change of the relative value of the generated cash flows will also directly impact the securities' market price.