Parallel risk: Difference between revisions

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imported>Doug Williamson
(Create the page. Sources: linked pages and BIS http://www.bis.org/bcbs/publ/d368.pdf)
 
imported>Doug Williamson
(Redefined in line with Parallel shock)
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''Interest rate risk.''
''Interest rate risk.''


Parallel risk is the risk of adverse effects from parallel changes in interest rates.
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.
This risk is relatively simpler to analyse, compared with non-parallel risk.

Revision as of 09:27, 31 August 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.


See also