Finance roller coasters aren’t found in amusement parks. Nope, they’re right here in our bank accounts, investment portfolios, and—brace yourselves—fixed-rate loans. Today, we’re going on a wild ride through Interest-Rate Risk. Buckle up, because this is going to be fun and a little bit terrifying!
The Perilous Peaks of Rate Changes ⛰️
Imagine you’re an adrenaline junkie who loves roller coasters. Now swap that roller coaster with interest rates, and you’ve got yourself a finance thrill-ride junkie. Interest-rate risk is what happens when these rates start doing loop-de-loops. It’s the risk that those pesky rate changes will mess with the value of your fixed-interest assets and liabilities.
🎢 Diagram Ride Time!
graph TB
A[Interest Rates] -->|Climbing| B(Your Financial Stability)
B -->|Caution: Peaked| C[
