The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

PREPAYMENT RISK Definition & Legal Meaning

Law dictionary entry - legal definition of embargo

Definition & Citations:

The risk associated with a fall in interest rates that is incurred by the lender or investor. As interest rates fall, most borrowers will pay of their loan balances and the investors are left to reinvest them at rates lower than they would have preferred.


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