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Exact(15)
Stripped of currency and inflation risk, interest rates in the southern countries plunged to unprecedented lows.
Because lenders assume more risk, interest rates for nonconforming loans are higher than for conforming.
If companies can't precisely assess risk, interest rates will increase for everyone except the most negligent credit card users.
"Failure to act will risk interest rate rises, causing the recovery to falter and putting jobs at risk".
But there is compensation for the risk: interest rates on high-yield bonds are running at least 7.5 percentage points above Treasury securities of comparable maturity.
(Conforming mortgages meet specific guidelines of Fannie Mae and Freddie Mac, which repurchase the loans and resell them to investors. Because lenders assume less risk, interest rates for conforming loans typically have been lower than for nonconforming).
Similar(44)
Exchange-rate risk, interest-rate risk, and other threats are all exchanged for counterparty risk.
The legislative process, especially one that risks interests of dominant market players, tends to extend over long periods of time.
And longer duration means huge risk if interest rates go up.
Leverage may increase business operating risk and interest burdens.
The risk free interest rate is 3.5% annually.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com