Interest Risk

Interest risk is the risk attributable to the possibility of financial loss arising from a change in interest rates. It is a component of market risk. For the creation of my database, I used interest risk instead of market risk. I did this because my database is only specific to interest rate swaps. In an interest rate swap, the relevant market risk component is interest risk. The market risk of an interest rate swap would not change significantly if over seas markets chrased, or the Dow Jones Industrial Average fell, except with respect to interest rates. For that reason, interest risk was substituted for market risk in the creation of my database.