Yield Sensitivity

« Back to Glossary Index

Yield sensitivity, or which is also known as interest rate sensitivity, is a calculation of how much the price of a fixed-income asset will fluctuate as a result of alteration in the interest rate. Generally, securities and other asset types that are more yield-sensitive have high price fluctuations than those with less yield sensitivity. Yield sensitivity should be taken into account when selecting a fixed-income asset that an investor may wish to sell on the secondary market. Yield sensitivity always affects both the purchasing and selling of an asset, and interest rates and fixed-income asset prices are inversely correlated.

« Back to Glossary Index

Check Also

coinbase-base-launch-layer-2-blockchain

Coinbase Base Launch: A New Milestone In The Crypto Industry

Coinbase, the world’s leading cryptocurrency exchange, has recently launched a new feature called BASE, aimed …

AdBlock Detected

Looks like you are using an ad-blocking browser extension. We request you to whitelist our website on the ad-blocking extension and refresh your browser to view the content.