Parallel risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Redefined in line with Parallel shock) |
imported>Doug Williamson (Layout.) |
||
| Line 1: | Line 1: | ||
''Interest rate risk | ''Interest rate risk'' | ||
Parallel risk is the risk of adverse effects from a change in interest rates, which affects all interest rates by an equal amount. | Parallel risk is the risk of adverse effects from a change in interest rates, which affects all interest rates by an equal amount. | ||
Revision as of 21:56, 12 November 2016
Interest rate risk
Parallel risk is the risk of adverse effects from a change in interest rates, which affects all interest rates by an equal amount.
This risk is relatively simpler to analyse, compared with non-parallel risk.
