# Interest Rate Risk

*Risk & Portfolio — Finicade finance glossary*

Interest rate risk is the loss from rates moving against a position — falling bond prices when yields rise, or funding that reprices faster than assets.

Interest rate risk is the loss that comes from rates moving against a position — falling bond prices when yields rise, or a funding cost that reprices faster than the assets it funds. Duration measures the first-order size of it and convexity the curvature. The banking version, borrowing short to lend long, is the oldest business model in finance and the mechanism that destroyed Silicon Valley Bank in 2023.

**Also known as:** rate risk, duration risk, IRRBB

**Related terms:** [Duration](https://finicade.com/glossary/duration), [Convexity](https://finicade.com/glossary/convexity), [Yield Curve](https://finicade.com/glossary/yield-curve), [Floating Rate Note](https://finicade.com/glossary/floating-rate-note), [Reinvestment Risk](https://finicade.com/glossary/reinvestment-risk)

Source: https://finicade.com/glossary/interest-rate-risk