Reinvestment Risk

What Does Reinvestment Risk Mean?
The risk that future proceeds will have to be reinvested at a lower potential interest rate.

Investopedia explains Reinvestment Risk
This term is usually heard in the context of bonds. This "reinvestment risk" is especially evident during periods of falling interest rates where the coupon payments are reinvested at less than the yield to maturity at the time of purchase.

Related Terms

Country Risk
Income Risk
Liquidity Risk
Political Risk
Price Risk
Reinvestment
Risk Averse
Risk/Return Tradeoff
Systematic Risk
Unsystematic Risk
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