Theories Regarding Risk Rates: Structure, Factors That Influence Fixes Income Financial Investments

Mădălina Antoaneta Rădoi () and Alexandru Olteanu ()
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Mădălina Antoaneta Rădoi: Economic Sciences Department „Nicolae Titulescu” University
Alexandru Olteanu: Economic Sciences Department

Global Economic Observer, 2016, vol. 4, issue 2, 51-57

Abstract: Bonds – as a representative type of securities for fixed income financial investments with a long-term maturity – have a price which reflects the disadvantages of interest rate modifications. This price illustrates a well-known characteristic of financial markets, respectively: the high volatility of long-term bonds rate in comparison with short-term securities rate. The variations of interest rates reflect the risks of investments made in long-term bonds. Investors and financial investment managers are permanently concerned with protecting against interest rate risk

Keywords: default risk; anticipation theory; the theory of the segmented markets; liquidity premium theory; preferred areas theory (search for similar items in EconPapers)
Date: 2016-11
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