"She changed her mind when I told her about interest rate risk."

In effect, the borrower has agreed to take the interest rate risk.

Others have assumed interest rate risk, by buying issues that mature in 20 or more years.

But Treasury bonds have too much exposure to interest rate risk, he said, so the funds are light on government issues.

These have no credit risk, but possibly quite a bit of interest rate risk.

The tax treatment of financial instruments companies use to manage interest rate risk is to be reformed.

One way to quantify the interest rate risk on a bond is in terms of its duration.

The measure of interest rate risk typically used by bond analysts is called duration.

But not in terms of interest rate risk.

"I'm more worried about interest rate risk," he said.

There's more than that to interest rate risk.

While some of these risks materialize slowly over time, others - such as interest rate risk - are felt with each measurement period.

Thus, interest rate risk is magnified and contains a high degree of volatility.

Treasury securities, of course, are subject to interest rate risk and therefore can decline in value if sold before they mature.

Even so, going longer than the 90-day maximum permitted for money funds exposes investors to interest rate risk.

It has taken the agency four years to develop the model it will use to monitor interest rate risks.

Interest rate risk is the risk that interest rates will rise.

Funds that invest in longer-term bonds tend to have higher interest rate risk.

Key factors to consider in evaluating sensitivity to interest rate risk include:

Calls expose investors to the very interest rate risk that the "buy and hold" method neutralizes.

Have zero investment and zero interest rate risk associated with cash value growth.

As a result, long-term government bond funds, particularly vulnerable to interest rate risks, posted average losses of 4.7 percent.

That duration is a measure of interest rate risk is demonstrated as follows.

The assessment of interest rate risk is typically informed by some type of stress testing.

But its interest rate risk is small.