Definitions for "INTEREST-RATE RISK"
Keywords:  rise, adversely, decline, chance, bond
A form of investment risk whereby changes in interest rates adversely affect the value of a security portfolio. For example the value of bond holdings will decline should interest rates increase.
The risk that changes in interest rates will adversely affect the value of an investment portfolio. Interest-rate risk affects portfolios with large holdings in long-term bonds or many dividend-paying utility company stocks because the value will fall in the event interest rates rise.
See C-3 risk. TO TOP