Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- CALL RISK
The risk that declining interest rates will create an economic incentive for the owner of a call option to exercise that option. In MBSs, call risk is the risk that declining interest rates will accelerate prepayment of the underlying mortgage loans and thereby shorten the life of the investment.Back