Interest-Rate Risk, also known as interest-rate exposure, refers to the risk arising from changes in interest rates. These changes can impact the value of fixed-interest assets and liabilities, cause mismatches in asset-liability repricing, and influence prepayment and reinvestment activities.
Senior refunding refers to the process of replacing securities maturing in 5 to 12 years with issues that have original maturities of 15 years or longer. Objectives can include reducing the bond issuer's interest costs, consolidating several issues into one, or extending the maturity date.
