Financial term
Glossary A–Z

Interest-rate risk

The risk that a financial instrument’s value or cash flows change when market rates change.

Why this matters

The risk that a financial instrument’s value or cash flows change when market rates change.

Example

If similar new bonds offer higher yields, a fixed-coupon bond may fall in price. Selling before maturity can realise a loss even when the issuer pays on time.

Common mistake

Confusing interest-rate risk with default risk or assuming holding to maturity removes every risk.

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General financial concept; not an individual recommendation.

Russian source references retained.

Educational material is not individual investment, legal or tax advice.