**Net Interest Rate Differential** — In international markets, the difference in the interest rates of two distinct economic regions. If a trader is long the NZD/USD pair, he or she owns the New Zealand currency and borrows the US currency. These New Zealand dollars can be placed… … Investment dictionary

**Net Interest Rate Spread** — The difference between the average yield a financial institution receives from loans and other interest accruing activities and the average rate it pays on deposits and borrowings. The net interest rate spread is a key determinant of a financial… … Investment dictionary

**interest rate** — See base interest rate buy at end of term interest rate net interest rate … Dictionary of automotive terms

**Interest rate cap and floor** — Interest rate c An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for… … Wikipedia

**Interest rate risk** — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… … Wikipedia

**Net interest income** — (NII) is the difference between revenues generated by interest bearing assets and the cost of servicing (interest burdened) liabilities. For banks, the assets typically include commercial and personal loans, mortgages, construction loans and… … Wikipedia

**net interest** — ➔ interest * * * net interest UK US noun [U] FINANCE, BANKING, TAX ► the rate of interest earned by a bank account or an investment after tax has been paid: »A saver now gets 3.22% net interest on £2,500 in one of our accounts. ► the difference… … Financial and business terms

**Interest rate swap** — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… … Wikipedia

**net interest margin** — The amount of interest income minus interest expense, usually expressed as a percentage. The net interest margin percentage is calculated by dividing interest income less interest expense by average earning assets. If interest income includes tax … Financial and business terms

**interest rate swap** — A financial instrument representing a transaction in which two parties agree to swap or exchange net cash flows, on agreed upon dates, for an agreed upon period of time, for interest on an agreed upon principal amount. The agreed upon principal… … Financial and business terms