What is mark-to-market risk in debt ... - The Economic Times
Jun 22, 2020· This is known as mark-to-market or MTM risk. 1. A debt instrument is issued at a fixed coupon which depends on the market situation at the time of the issue and is paid regularly until maturity. 2. When interest rates fall, the value of the debt securities held will go up, leading to a mark-to-market …
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