Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Cash Flow Mapping – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]
  • Monday, April 28, 2025
  • The Financial Encyclopedia
[wpdreams_ajaxsearchpro id=43 ]

Risk Management

  Risk Management   |   Terms
  • 2937
  • April 19, 2020
[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Cash Flow Mapping

An interest risk management procedure in which the cash flows of a specific claim are assigned or mapped to a set of benchmark claims in order to measure and manage the effects of different-scale changes in interest rates, associated with different maturities. This procedure represents a financial instrument as a portfolio of zero-coupon bonds for the purpose of calculating its value at risk. This depends on decomposing the cash flows by placing each cash flow into a standalone maturity bucket. Within the value at risk (VaR) calculation, it is crucial to assign interest rate cash flows to the available risk points.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=f206fae4fn]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]

Latest Terms

Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments

    Leave Your Comment

    Your email address will not be published.*