Interest Sensitive Assets

Filed Under » ,
Dictionary Says

Definition of 'Interest Sensitive Assets'

Assets held by a bank that are vulnerable to changes in interest rates. This change can occur either when the asset matures or when it is repriced according to an index rate. The value of these assets is adjusted according to the rise or fall of a published rate or index
Investopedia Says

Investopedia explains 'Interest Sensitive Assets'

There are several types of interest sensitive assets such as adjustable rate mortgages (ARMs) and variable rate consumer and demand loans. The benchmarks that their pricing adjustments are tied to can include the 6-month T-Bill rate, the LIBOR and the prime rate. The sensitivity of these assets to interest rate changes can negatively affect the customers more than the bank itself.
Search results for

'Interest Sensitive Assets'

  • CFA Question of the Week 12/07/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/120705.asp
    ... I. If interest rates are expected to rise, banks will generally lower the ratio
    of interest sensitive assets to interest sensitive liabilities. II. ...

  • Immunization Inoculates Against Interest Rate Risk

    http://www.investopedia.com/articles/financial-theory/09/bond-interest-rate-immunization.asp
    ... with longer durations are more sensitive to fluctuations ... Interest Rate Immunization
    Strategies Any immunization strategy ... to match the duration of assets to the ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Interest Rate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-risk.asp
    ... Expensing; 8.18 Capitalizing Intangible Assets; 8.19 Depreciation; 8.20 Fixed Asset ...
    9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components ...

  • Use Duration And Convexity To Measure Bond Risk

    http://www.investopedia.com/articles/bonds/08/duration-convexity.asp
    ... or mortgages. These assets are of longer duration and their values are
    more sensitive to interest rate fluctuations. In periods ...

  • CFA Level 1 Study Guide - Equity Investments - Life Cycle Analysis ...

    http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/life-cycle-analysis-business-cycle.asp
    ... Expensing; 8.18 Capitalizing Intangible Assets; 8.19 Depreciation; 8.20 Fixed Asset ...
    9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components ...

  • CFA Level 1 Study Guide - Quantitative Methods - The Five ...

    http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/time-value-money-interest-rates.asp
    ... Expensing; 8.18 Capitalizing Intangible Assets; 8.19 Depreciation; 8.20 Fixed Asset ...
    9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components ...

  • Watch A Bank's Liabilities

    http://stocks.investopedia.com/stock-analysis/2010/Watch-A-Banks-Liabilities-RBCAA-IBOC-CFR-UMBF0503.aspx
    ... UMB Financial Corp (Nasdaq:UMBF) reported total interest bearing liabilities of
    $10.7 ... This figure, however, is close to the percentage of assets repricing for ...

  • 5 Things To Do Before Interest Rates Go Up - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0710/5-Things-To-Do-Before-Interest-Rates-Go-Up.aspx
    ... because these bonds' prices are more sensitive to interest ... so as rates head higher,
    their interest payments go ... of their portfolio in foreign assets no matter ...

  • Make Your Portfolio Safer With Risky Investments

    http://www.investopedia.com/articles/financial-theory/08/reduce-risk.asp
    ... and gold stocks typically have a low correlation with interest-sensitive stocks
    and, at times, the correlation is even negative. Buying riskier assets with a ...

  • Financial Statements: Long-Term Liabilities | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements8.asp
    ... Increases in current assets - except for cash - are "uses of cash". ... Second,
    many companies are operationally sensitive to interest rates. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links