Interest Rate Risk

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When managing a fixed income portfolio, there are two primary risk factors that financial advisors consider: credit risk and interest rate risk. The superstar bond fund managers of the world have set themselves apart by a superior ability to ...
May 17, 2012 at 10:58 | Source: Yahoo Finance
Currencies were beginning to trade again on the basis of interest-rate differentials, rather than as highly-correlated clumps of safe havens and risk assets. Sterling, for example, would wax and wane according to how dovish or hawkish the Bank ...
May 18, 2012 at 08:41 | Source: Wall Street Journal
This is often an excellent time to bonds. But if you own them already, you're stuck. Inflation risk, interest-rate risk, credit risk and prepayment risk are all figured into the pricing of bonds. The more risk, the higher the yield. It's also true that ...
May 21, 2012 at 20:12 | Source: Inside Fidelity
The basis of our plan is that we invest our college funds in an age-adjusted 529 college savings plan that reduces market and interest-rate risk the closer the girls get to matriculation. Every state offers these funds with major mutual-fund ...
May 25, 2012 at 16:54 | Source: Reuters
The long duration of the guarantees makes them highly interest rate sensitive, so ATP hedges the risk by holding long-term bonds or interest rate swaps in a hedged portfolio. It has DK500bn (about €70bn) in this portfolio, and DK75bn in a return-seeking ...
May 20, 2012 at 03:38 | Source: Financial Times
“We don’t do the macro hedging from a corporate perspective,” he said. “We obviously manage our interest-rate risk every day.” That doesn’t make Bank of America, Wells Fargo or Citigroup risk-free. “The scale of their transactions ...
May 22, 2012 at 05:51 | Source: Businessweek
The volatile markets have highlighted the need for investors to take account of risk, liquidity and that high interest rates should not just be accepted at face value, as they are a reflection of the state of the lender and their ability to make ...
May 28, 2012 at 17:19 | Source: Hedge Week.com
Monetary policy makers agreed last month that factors affecting risk perceptions were “of key ... the Economy Ministry said on May 24. Forward-rate agreements used to bet on three-month interest rates in nine months traded at 7.08 percent ...
May 29, 2012 at 07:45 | Source: Bloomberg
A Chinese company places renminbi on deposit with a mainland bank, earning an interest rate of about 3.5 per cent ... use a currency derivative to eliminate the foreign exchange risk. The end result: the company has captured the difference ...
May 29, 2012 at 12:31 | Source: Financial Times
Congress should set a premium that reflects the cost that fixed rate loans impose on taxpayers in the form of interest rate risk. For example, lawmakers could set the premium at the difference between the interest rates on 1-year and 20-year ...
May 22, 2012 at 20:46 | Source: New America Foundation