BizTerm Definition
Interest rate analysis
Full Definition

Is used to show the analysis on what-if situations if the mismatched book is closed at the market rate and what will happen to the interest flow if market rates go up/down by a certain percentage. The total interest book is split into two parts, the matched book and the mismatched book. The interest flow for the mismatched book is calculated by comparing the contract rates against the market rates. For the sensitivity analysis, interest flow of unmatched book is also analyzed in situations when market rate move up by 1% and when market rates move down by 1%. See also Position, position administration tables, standard position codes, combined position code, risk management, foreign exchange risk, forex, open currency position, mismatch, interest risk, liquidity risk, forward revaluation, interest revaluation, break even and nostro projection.


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