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Can Anyone Tell me About Intrest Rate Risk?

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May 6th 2014 AN ACCA USER 280 Points

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Interest rate risk can due to rising rates, falling rates, basis risk or gap exposure, for basis risk, the floating rate assets and floating rate liabilities are matched but linked to different refenrence rate, so the match cannot be easily performed. for gap exposure, the floating rate assets and floating rate liabilities are matched but referenced to different rate interval, such 3 months rate or 6 months rate, thus cannot really hedge againt each other, thus risk

May 13th 2014 AN ACCA USER 1,180 Points
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February 24th 2017 AN ACCA USER 17,840 Points
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