Interest sensitivity gap — The interest sensitivity gap was one of the first techniques used in asset liability management to manage interest rate risk. The use of this technique was initiated in the middle 1970s in the United States when rising interest rates in 1975 1976 … Wikipedia
Interest rate risk — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… … Wikipedia
interest-rate risk — interest rate exposure The risk arising from changes in interest rates. In recent decades the different forms of interest rate risk have been the subject of much analysis, monitoring, and scrutiny. In the 1980s, for example, the savings and loan… … Big dictionary of business and management
interest rate floor — The opposite of an interest rate cap. An arrangement under which the seller, in return for a premium, will pay to the buyer the difference between the specified floor rate and the lower variable rate, should the variable rate fall below that… … Law dictionary
Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… … Wikipedia
Interest Rate Differential - IRD — A differential measuring the gap in interest rates between two similar interest bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a … Investment dictionary
gap — A term used by technicians to describe a jump or drop in prices; i.e., prices skipped a trading range. Gaps are usually filled at a later date. The CENTER ONLINE Futures Glossary (1) As a measurement of exposure to interest rate risk, the amount… … Financial and business terms
gap — asset liability gap 1) A measure of interest rate risk used in banking. It comprises the difference between rate sensitive assets (i. e. loans) and rate sensitive liabilities (i. e. deposits) within a particular range of repricing time periods.… … Big dictionary of business and management
Gap Analysis — 1) The process through which a company compares its actual performance to its expected performance to determine whether it is meeting expectations and using its resources effectively. Gap analysis seeks to answer the questions where are we?… … Investment dictionary
gap analysis — 1) A methodical tabulation of all the known requirements of consumers in a particular category of products, together with a cross listing of all the features provided by existing products to satisfy these requirements. Such a chart shows up any… … Big dictionary of business and management
