What is interest rate risk?
Value and debt-cost changes caused by interest rate movements: rates reprice values through cap rates and reprice floating or maturing debt. Managed with fixed-rate debt, interest-rate caps, and laddered maturities.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.