The chance that an asset will be reinvested at a less than favorable rate. This can cause great loss. AKA refinancing risk or reinvestment risk. Refer to negative gap, positive gap, ratesensitive assets and ratesensitive liabilities.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
The chance that an asset will be reinvested at a less than favorable rate. This can cause great loss. AKA refinancing risk or reinvestment risk. Refer to negative gap, positive gap, ratesensitive assets and ratesensitive liabilities.
This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
Powered by Black’s Law Dictionary, Free 2nd ed., and The Law Dictionary.