FT MarketWatch

Reinvestment risk

The Risk resulting from the fact that Interest or dividends earned from an investment may not be able to be reinvested in such a way that they earn the same rate of Return as the invested funds that generated them. For example, falling Interest rates may prevent bond Coupon payments from earning the same rate of Return as the original bond.

Related Terms: 7 Coupon, Fund, Interest, Interest rate, Return, Risk, Rate of return
Other Related Pages: Category: Trading Starting With: R
Additional Related Terms: 10-K, 12b-1 funds, Allowance for depreciation, Average accounting return, Adjustable rate, Automatic Funds Transfer, Accrual bond, Accrual of discount, Accrued interest, Accumulation bond