The term “interest rate risk” refers to the probability of a change in the value of fixed-income security owing to fluctuations in interest rates. Although any unexpected change in interest rates poses a risk, investors are primarily concerned with the downside risk. The interest rate significan...
Basis risk arises when the bases on which interest rates are determined for assets and liabilities differ. Gap exposure, on the other hand, arises from the timing differences in the repricing of...
Back to Advanced Financial Management (AFM) How to approach Advanced Financial Management Questions on risk management feature regularly in the Advanced Financial Management exam. Performance information from recent exams suggests students tend to do less well on interest rate r...
Overall, it is possible and prudent to manageinvesting risksby understanding the basics of risk and how it is measured. Learning the risks that can apply to different scenarios and some of the ways to manage them holistically will help all types of investors and business managers to avoid unnec...
Overall, it is possible and prudent to manageinvesting risksby understanding the basics of risk and how it is measured. Learning the risks that can apply to different scenarios and some of the ways to manage them holistically will help all types of investors and business managers to avoid unnec...
To meet IRRBB obligations, many banks are now abandoning the lens of the past 15 years—predicated on “lower for longer”—and taking action to manage the impacts of higher rates across the business.1IRRBB’s new definition of risk to net interest income...
Hi. My name is Robert Reaburn, and today, we're going to go over how to effectively manage risk with an active investment strategy. When we as investors deploy our capital, there's three main risks that we all face as investors regardless of size or time. We all face what we call...
How ready is your corporate treasury to manage global pricing strategies and foreign exchange risk? Read peer treasury insights and leading practices from technology companies.
more reward in the long run. Since high-yield savings accounts are on the lowest end of the risk spectrum in our analysis, followed by bonds offering a medium amount of risk, and equities offering a higher amount of risk, we would also expect the long-term returns to follow that pattern...
Think: How do you want your business to look a year from now? Two years from now? Five? Is it sustainable? Popular business ideas to get you started Dropshipping: Dropshipping is a great low-cost business idea that lets you sell products without needing to manage your own inventory. ...