Exchange rate risk is rising, creating greater obstacles to foreign investment flows into the emerging-market countries.
There's rate risk in this spread (short-term rates could shoot up) but no credit risk.
Interest rate risk, tax risk, business risk, purchasing power risk are all types of risk.
"Treasurys are naked interest-rate risk, " says Joanna Bewick, lead manager of Fidelity Investments' Strategic Funds.
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Interest-rate risk is going to be a major issue to tackle down the road.
Bonds and loan prices are complicated by other factors, such as liquidity, currency risk and interest-rate risk.
Interest rate risk is the risk that interest rates will change significantly from what the investor expected.
While immune from credit risk, Agency MREITs have their own financial kryptonite in the form of interest rate risk.
Both companies guarantee the creditworthiness of these bonds, but not the interest-rate risk.
One major risk (other than the obvious interest rate risk) for swap investors is that of counterparty risk.
You could reduce your interest rate risk by going for a shorter-term bond.
They return about the same as long-term bonds with lower interest-rate risk and pay substantially better than short-term bonds.
If China could swap dollars for SDRs, some exchange-rate risk would be shifted to the other members of the IMF.
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Institutional investors turned up their noses on hybrid bonds, hesitant to take the interest rate risk if LIBOR remained minimal.
You could look to put some of that cash into loans, adding potential returns without taking incremental interest rate risk.
Although the euro will eliminate intra-European exchange-rate risk, it does not mean that German and Italian bonds become perfect substitutes.
Until the Great Recession, the Fed limited its purchases of Treasury paper to short-term bills that carry no interest rate risk.
As for exchange rate risk, we are fully covered since local currency deposits are offset by credits in the same currency.
Osterweis Strategic Income has more credit risk but lower interest-rate risk (due to shorter average duration) than some intermediate-term bond funds.
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So how can individual investors hedge their portfolios against interest rate risk?
This means that businesses in Denmark stand to benefit from the elimination of exchange-rate risk when dealing with their main trading partners.
Credit derivatives have made it easier to separate the credit risk (the danger of default) of bonds from the interest rate risk.
Stretching it even more would expose the government to huge interest-rate risk.
The five-year bonds, called India Development Bonds, came with insurance against exchange-rate risk and promises not to scrutinise the source of the investment.
The convergence in yields reflects mainly the removal of exchange-rate risk since the creation of the single currency, but that still leaves default risk.
Interest rate risk is inherent to all fixed income and, after a decade of declining yields, rising interest rates will cut into portfolio total returns.
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The infection rate risk of users in Tajikistan is 61.1 percent of systems there coming under attack from malware at least once in the quarter.
If you are willing to buy individual bonds, you can also build a ladder with bonds of differing maturities to offset future interest rate risk.
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They hedge their own exposure to interest-rate risk through derivative contracts.
Consider reducing your interest rate risk while increasing your credit risk.
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